In fact, everyone wants the desired investment value to continue to increase, but there are times when it doesn’t.
If you choose the type of stock or mutual fund investment, your investment can also decline due to the subprime mortgage crisis that often occurs in the United States. It’s a different story if you put your funds in the form of gold or money market mutual funds.
Losses that may be received are not as large as when compared to placing the entire investment in shares.
If likened, diversification can be said to be like cooking where the ingredients to be included have been measured in a certain amount so that later it will produce a delicious dish.
However, not all food ingredients can be included because later it will cause the taste to be bad.
The same is true for diversification where if you divide too much of your investment funds into different instruments, then the results will not necessarily be impressive and satisfying.