What is Investment Diversification and How to Diversify Investment


Don’t Put All your Eggs in One Basket or in cool language means don’t put all the eggs you have in one basket. Why? Because if you put all the eggs into one basket, then if the basket falls, the whole egg will break and you will experience a huge loss.

It’s different if you divide the eggs into different containers. If one container falls and the egg breaks, there are still some eggs in different containers that are still intact. That way you will not experience 100% loss.

So what does investment diversification mean?

Investment diversification can reduce investment risk (Photo: Shutterstock)
Investment diversification can reduce investment risk (Photo: Shutterstock)

With that parable, it can be said Investment diversification is risk management that is part of an effort to reduce risk in investing. Because with do not allocate all assets to one investment instrument, the risk will be even lower.

For example, as Mr. Budi. Mr. Budi is a stock investor. Because stocks are discounted, he uses all his savings to buy coveted stocks. Unmitigated, he also sold several assets owned to buy shares.

But unfortunately Mr. Budi’s estimates missed, along with the Composite Stock Price Index (CSPI) that did not improve, all of Mr. Budi’s shares turned red so he suffered a huge loss. As is well known, stock investment is a risky investment, even though it has a very high potential return. Without sufficient knowledge, this type of investment can make you fall into poverty.

The story is different if Mr. Budi diversifies investment. Mr. Budi only uses 50% of the cash he has to play shares, while the other 50% he buys other types of investments that have low risk such as gold, deposits, or money market mutual funds. Even though then the investment in the stock market loses or fluctuates rapidly, some of the money will be safe because the price of gold or money market funds and deposits tend to be stable.

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Let’s Learn Gold Investment and Know the Risks

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What is Stock? Definition, Benefits and Risk of Stock Investment

How to diversify investments?

The way to diversify investments is to share risk (Photo: Shutterstock)
The way to diversify investments is to share risk (Photo: Shutterstock)

Then can we diversify risk with just one type of investment product? The answer can be. If you are a mutual fund investor, then you can diversify your investments by dividing the types of mutual fund investments that you do, between mutual funds with minimal risk and high risk mutual funds.

Investment diversification is carried out to anticipate the possibility of a decline in the value of high-risk mutual funds, such as equity funds. So besides having a stock mutual fund, you are also advised to have a low-risk mutual fund such as a money market mutual fund.

Therefore, the risk of decline in the value of money market mutual funds is lower than stock mutual funds. If a mutual fund shares 100% of its management assets enter the stock market, then money market funds are types of mutual funds whose majority of assets enter money market instruments such as deposits and bonds with maturities of less than a year, such as safe government bonds.

By diversifying mutual fund investments, your investment funds can be maintained. If then the value of the stock mutual fund falls, there will be a counterweight in the money market mutual fund. You can also diversify investment mutual fund stocks by investing in precious metal gold.

If you don’t want to be complicated in diversifying investments, you can buy a number of mutual fund investment packages and gold bullion investments offered by Bukalapak.

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Know Your Investment Risk Profile with the 5 Questions Below

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Fix Your Risk Management with These 3 Types of Investment

This investment package makes it easy for you to diversify your investments

With the BukaReksa investment package, investment diversification is easier (Photo: Shutterstock)
With the BukaReksa investment package, investment diversification is easier (Photo: Shutterstock)

1. Gold Mutual Package

With just one click you will have 3 selected mutual fund products directly. Try an investment package in BukaReksa where there are 2 mutual fund products and a number of gold balances. This package can be used as an alternative, if you want to diversify portfolio without complicated. Moreover, gold prices tend to be stable and predicted to continue to rise again in the future.

2. Package according to risk profile

If you see the BukaReksa application, then there are different packages in each person according to the risk profile. You can try the Pelan investment plan but it’s definitely right for you with a low risk profile or still a beginner.

You can also try the Safe Play package, especially for you who are moderate or have a medium risk profile. For the Intrepid investment package, for you who have a high risk profile and dare to face the possibility of loss in investing.

What are you waiting for, immediately diversify your investment so that your future remains safe. You can buy a mutual fund package here or invest in gold here! If you haven’t registered yet, don’t forget to register first here yes.



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