We’ve all heard the saying: don’t put all your eggs in one basket, and the same is true when it comes to managing your personal wealth and assets. If you have money invested in the stock market, have a property portfolio, and have cash savings, it is safe to say you’ve diversified your assets and wealth. 

However, some people have all their wealth and assets tied up in just ONE asset class! 

While there may be many reasons for this, it doesn’t provide a solid and sustainable approach to building wealth for the future. 

The importance of diversification

Let’s say the stock market experiences an all time low, similar to that in 2007. If all your wealth and savings are invested in this one asset class things may start looking pretty grim for your financial future. 

But if you have investments across the property market and stock market, and one of these asset classes experiences a downturn, as they no doubt will if you’re playing the long game, you will have other assets to fall back on. This is just one example of sustainable investing. 

Don’t put all your eggs in one basket!

Can diversification happen across one asset class?

While our advice would always be to diversify your investments across different asset classes, you are able to diversify your portfolio across just one asset class if needed. 

There may be many reasons as to why you only want to invest in one asset class, however if you’d like to start diversifying your portfolio across different asset classes and are not sure where to start, it may be worth chatting to a financial advisor. 

A financial advisor will be able to answer all your questions and provide you with a path that best suits your financial goals. 

Book a complimentary discovery session, and begin diversifying your assets today.