Building a Balanced Investment Portfolio: The Role of Company Shares in Diversification
Diversification is a fundamental strategy for reducing risk and optimizing returns in any investment portfolio. By spreading your investments across different assets, you protect your portfolio from the volatility and uncertainty associated with a single investment. One of the most effective ways to diversify is by including company shares—stocks—in your portfolio. Company shares provide a direct stake in the performance of publicly traded companies and offer the potential for long-term growth.