varies according to the goal that each individual investor has. The second of the advantages of diversification is that it permits the investor to maximize the return on their investment portfolio. Since the portfolio is balanced and the money is spread out in different types of investments, when a particular investment is doing well, the investor benefits. The third of the advantages of diversification is that nothing is set in stone. Investors should assess the portfolio diversification on a quarterly, semi-annually, or annual basis. During this evaluation, the investor can decide if their investment goal has changed. If so, then they may reallocate or re-balance the diversification of the investments in the portfolio to meet the new goal. It may also be that a specific sector of the portfolio has been performing poorly. The evaluation process allows the investor to re-balance the portfolio to get out of poorly performing investments and move the money into investment options that have the potential to perform better (2022, Lorette).
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