Diversification’s Challenge: Examining Portfolio Risk

A recent survey conducted by the Financial Stability Institute found that a significant portion of investors lack the necessary resources and expertise to effectively diversify their portfolios. Many individuals prioritize maximizing returns over minimizing risk, leading to concentrated investments. Experts recommend regularly rebalancing portfolios to mitigate risk and maintain a consistent allocation across asset classes. The lack of diversification continues to be a common concern, potentially impacting long-term investment outcomes.

Credits: Finance & economics