Shrewd investors must make the right moves

Having a diversified portfolio reduces your exposure to risk, but there are certain key factors that must be considered

Money moves: diversification of a portfolio must be carefully thought through. Photo: Getty

Let's start with the obvious: everyone knows that the reason for having diversification in an investment portfolio is to minimise risk. There is no doubt that a robust, well-diversified portfolio can be beneficial for investors in the long term.

Unfortunately, some investors have suffered significant capital losses due to having a strategy that appeared to be diversified, but in fact wasn't at all.

The benefits of a robust diversification strategy are more apparent ...