Diversification and portfolio construction

Ways to achieve diversification

Diversification can be achieved in a number of ways, such as: 

  • diversification across asset classes (e.g. shares as well as property)
  • diversification within the asset class (e.g. a number of different types of properties or shares) 
  • diversification between different sectors of the same asset class (e.g. commercial and residential property or large company shares and small company shares) 
  • diversification by investing in different country’s assets.