"An investment portfolio is typically built around a diversification strategy aimed at providing a mix of assets with varying return characteristics. A diverse asset allocation helps ensure that when some asset classes are down, others are up. It also helps prevent any one asset from having a disproportionately negative impact on a portfolio. Finding assets that have low correlations to one another is key to diversification. This is challenging, as prices in many global markets have responded similarly to macro uncertainties, rising and falling together."
Learn about Passive Vs. Active investments & impact on portfolio. 💡📚