Making financial investments can seem like a guessing game, but uncertainty is usually less likely if your financial portfolio is very diverse. Let’s take a look at some of the different asset classes, and why a strong portfolio usually includes several types. Bonds A bond is a debt security whereby you lend money to an issuer (which is often a company or federal agency), and in return, are provided with a bond that guarantees a specified rate of interest during the life of the bond. Once the bond is fully matured, the issuer pays its face value. The most common…
The Importance of Asset Class Diversification for a Strong Financial Portfolio
