How can I diversify my investment portfolio?
Diversifying your investment portfolio means spreading your investments across various asset classes to reduce risk. You can consider stocks, bonds, real estate, and mutual funds.
What percentage of my portfolio should be in stocks versus bonds?
A common rule of thumb is to allocate 60% to stocks and 40% to bonds, but it depends on your risk tolerance and investment goals.
Are there specific sectors I should focus on?
Yes, consider diversifying across sectors like technology, healthcare, consumer goods, and energy to balance risk and opportunity.
How often should I rebalance my portfolio?
It's advisable to review and rebalance your portfolio at least once a year or whenever your asset allocation drifts significantly from your target.
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