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diversification

Optimising the All-Weather portfolio [Mavens]

The All-Weather portfolio has protected against some of the worst market setbacks. But can it be improved for the UK?

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Every asset in a strategic asset allocation has an important role to play. Here are the main asset classes that will nourish and protect your portfolio.

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Does gold improve portfolio results? [Members]

Does holding a chunk of gold add lustre to your portfolio returns?

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Britain’s European counterparts show why home bias is a mistake.

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Is gold a good investment?

Should you invest in gold. Well, SHOULD YOU?

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An investment that has gone up when everything else has gone down is hard to say no to.

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Which commodities ETF?

What’s the best commodities ETF to invest in? We explain our pick

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How much value does commodities diversification add to UK investment portfolios?

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Are commodities the ideal alternative asset class that should be in any well diversified portfolio? Here’s the case for owning commodities

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The unsettling world of commodities investing demystified because new evidence reveals it’s an important portfolio diversifier.

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What are money market funds?

Money market funds are touted as a ‘cash-like’ product which offer better interest rates than the banks. But they’re much riskier than that.

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Why UK investors need gold and cash on top of bonds.

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The Global Financial Crisis was awful. Which means it must have some amazing lessons to teach us. Perhaps about diversification!

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The rules of diversification sometimes seem too simple to believe. Well, believe them now because some your favourite out-of-favour asset classes are saving the day now.

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A selection of rules of thumb that can help you devise your asset allocation strategy.

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UK market history suggests you need gold and cash in your portfolio to protect against the worst.

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Don’t be deluded: Most assets won’t diversify your portfolio. Plus the rest of the week’s good reads.

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A quick guide to asset classes

The pros and cons of the main asset classes neatly arrayed for your investing convenience.

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More on the academic mathematics behind your humble global index tracker.

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How big are return premiums like value and small cap? Are they worth the risk?

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You can use in a simple form many of the tricks of hedge fund managers, though it may cost you overall.

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Bad news for the nervous. Assets have become more closely correlated, making diversification harder.

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Vertical diversification

Vertical diversification is when your investment portfolio is spread across different types of assets. Cash, government bonds, corporate bonds, property and shares can each be expected to behave slightly differently and so produce different returns, as circumstances change. For instance, government bonds may soar when stock markets crash, because frightened investors sell their shares to [...]

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Portfolio diversification

When deciding whether to buy a particular asset, we should also pay attention to the assets we already own. A collection of assets is called a portfolio. By buying and holding assets with different characteristics, we can try to create a portfolio that offers the greatest return for the risk we’re prepared to take. Holding [...]

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