When working with people here in South Windsor and Hartford County, we find that they have some understanding of diversification. But generally, most don’t fully understand the concept. Some confuse diversification with asset allocation – and others believe they are diversified because they own a variety of investments. What we do is explain how diversification works and show them various ideas that will fit their investment profile. It’s also important for them to understand that diversification and asset allocation are approaches to help manage investment and risk. They don’t eliminate the risk of loss if security prices decline. Diversification and asset allocation are just two of the many concepts to understand when creating an investment strategy. Contact someone at Mundo Financial Services today to lean more. www.mundofs.com
Diversification and/or asset allocation does not ensure a profit or protect against a loss in a declining market. Investment value will fluctuate with market conditions. Past performance is no guarantee of future performance.