Portfolio diversification is a key financial planning concept in Singapore which is pivotal in mitigating risk. Spreading out investments across more than a single investment channel nullifies the “all eggs in one basket” syndrome, which deluges avid risk-takers in debt when a market venture turns sour. Portfolios can be generally diversified via investing in different asset classes or within the same asset class by using mutual funds, bonds, real estate, insurance, precious metals and other notable assets.
There are several key benefits to investing early, especially when one wishes to ensure their retirement plans reach their objectives. Some of these benefits may not be observed immediately, but in the long-term, the fruits of investing early remain undeniable.