💡
Spreading risk
Investierenab 9 J.
Spreading money across different investments to minimise the risk of loss. “Don't put all your eggs in one basket.” ETFs make spreading risk easy and cheap.
Risk spreading (diversification) is the most important principle in investing. Instead of putting everything on one card, you spread your money across different investments.
Three levels of spreading:
• Across companies: not one share, but hundreds (via an ETF)
• Across countries: not just Germany, but worldwide (MSCI World)
• Across asset classes: not just shares, but also overnight money and bonds
A well-diversified portfolio can withstand even severe crises, because losses in one area are offset by gains in others.
Did you know? According to studies, it takes about 100 different stocks to eliminate 90% of diversifiable risk – yet German private investors hold a median of just 3.5 positions.
Something missing or could the translation be better?
📚 Spreading risk understood?
Deepen your financial knowledge with 60 free learning modules and 16 calculators.
📚 To the learning paths →Das könnte dich auch interessieren