![]() It completely depends on the investment instruments. However, this does not mean that all investments have the chance of running into losses. ![]() Also, you shall have enough liquid assets parked to help you sail through volatile situations. Therefore, as an investor, you should be able to take the short-term and long-term market fluctuations. Risk tolerance level means how much money you can afford to lose. The first step for diversification is understanding your risk tolerance levels. Here are some tips on how to diversify your portfolio – Risk Portfolio diversification is one of the core components of investing and risk management. Learn About Money Market Instruments How to Diversify Your Portfolio?
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