Chris-Bailey-Responsive-Market-Commentary_February-2020qqqqq
Diversification is a vital tool to reduce the volatility from within your portfolio. A wide mix of assets reduces your vulnerability to individual underperforming securities or asset classes. However, ‘overdiversification’ can limit your returns too. We seek to choose investments which satisfy a number of criteria and we avoid those that contain risks which we find difficult to understand. We aim to choose holdings in high quality securities and asset classes from the outset which combined, reduce the overall volatility but still offer good opportunities for capital and income growth.