What is diversified investment?
Conclusion: A method to reduce risk by dividing assets into multiple parts.
One word explanation: Diversified investment = “Don’t concentrate on one thing”
Detailed explanation:
- Hold not only stocks but also bonds
- Invest not only in Japan but also overseas
- Invest at different times (accumulation)
Why is dispersion important?
Conclusion: Loss fluctuations can be reduced.
Reason: By combining assets with different price movements, The decline in one is covered by the other.
Specific example:
- Stocks fall → Bonds stabilize
- Japan is sluggish → overseas is growing
Summary: Reduce the risk of "everything going down at the same time".
Three axes of dispersion
Conclusion: Consider diversification in terms of assets, region, and time.
① Asset diversification
- stocks
- bond
- cash
→ Take advantage of differences in price movements
② Regional dispersion
- Japan
- united states
- emerging countries
→ Take advantage of differences in economic growth
③ Time distribution
- Lump-sum investment
- accumulated investment
→ Prevent high price grabbing
common misconceptions
- It is safe if it is distributed → × (losses will occur)
- The more the better → × (difficult to manage)
- Return decreases → △ (stable)
Advantages and disadvantages
| Item | Content |
|---|---|
| Benefits | Reduce risk and improve stability |
| Disadvantages | Hard to make big profits |
How to use it in practice
Conclusion: Simple distribution is sufficient.
Specific actions:
- Utilize investment trusts with global stocks
- Incorporate some bonds
- Continue to save every month
For intermediate users:
- Core: widely distributed assets
- Satellite: Specific theme investment
Summary
- Diversification is the basis of risk management
- Think in terms of “assets, region, and time”
- Best to start simple
Action: First, experience diversification with “Worldwide + Savings”