Your portfolio covers various sectors, but true diversification extends beyond sectors. Consider adding different asset classes and regions to achieve a broader allocation. While diversification spreads risk, it doesn't guarantee profits or prevent losses. Consult a financial advisor to align your portfolio with your goals and risk tolerance.
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Plexure Group
Vista Group International
ANZ (Australia and New Zealand Banking Group)
Pushpay Holdings
a2 Milk Company
Restaurant Brands New Zealand
Pacific Edge”
(Original question on Reddit)
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The portfolio you listed includes companies from different sectors, which is a key aspect of diversification. However, diversification is not just about having investments in different sectors. It also involves spreading your investments across different asset classes (stocks, bonds, real estate, etc.), different regions (domestic and international), and different investment styles (value, growth, etc.).
So, while your portfolio is diverse in terms of sectors, it appears to be concentrated in stocks and in the Australia/New Zealand region. If you’re looking for more diversification, you might want to consider adding investments from other asset classes or regions.
Consider expanding your portfolio to include investments in other asset classes and regions to achieve a broader and more balanced allocation of your investments.
It’s important to note that while diversification can help spread risk, it does not assure a profit or protect against loss. It’s always a good idea to consult with a financial advisor to ensure your portfolio aligns with your investment goals and risk tolerance.
Hope this helps.
Regards, Clive Fernandes (Financial Adviser)
Director – National Capital
Disclosure: I am the director of National Capital, a KiwiSaver advice firm. The information in this post is only general in nature and is not personalised financial advice. Please contact us if you want financial advice.
