Diversification means spreading your investments across different assets instead of relying on just one. In Australia, this can include a mix of stocks, ETFs, property, and bonds.
The main goal of diversification is to reduce risk. If one investment performs poorly, others can balance it out and protect your overall portfolio. This approach helps create more stable and consistent returns over time.
Successful investors don’t put all their money in one place — they build a balanced portfolio that can survive market ups and downs.