Start with what an investment represents, how it is held, and which risks deserve closer attention.
An ownership interest in a business. Returns may come from dividends and changes in price.
Business earnings, valuation, concentration and currency exposure.
Prices can fall sharply; company failure can erase invested capital.
Lending to a government or company, commonly through bonds.
Issuer quality, maturity, interest-rate sensitivity and currency.
Default, interest-rate changes and inflation can reduce value.
Deposits and short-term instruments used to meet near-term needs.
Access terms, issuer exposure, interest rates and local deposit protections.
Inflation can erode purchasing power; protections depend on jurisdiction.
Property and infrastructure exposure, directly or through funds and securities.
Cash flows, financing, valuation frequency and asset concentration.
Illiquidity, leverage and operating risks can be substantial.
Investments outside public exchanges, including private equity and private credit.
Lock-ups, capital calls, valuation methods and fee structures.
Limited liquidity, difficult valuations and access restrictions.
A strategy combining different investment exposures.
Underlying holdings, correlations, rebalancing and total costs.
Diversification cannot guarantee a profit or prevent losses.
An ETF, a mutual fund or a separately managed account is a way to hold investments. Its structure alone does not tell you the risk, quality or diversification of the underlying holdings.
Examine holdings, concentration, liquidity terms, total costs, tax treatment and currency exposure. Availability and investor eligibility vary by country.
Use the issuer’s disclosure documents and relevant local regulator resources before making a decision. This guide does not rank products or assess your circumstances.
SEC Investor.gov: allocation and diversification →