Diversification is the act of spreading your investment across multiple asset classes where if one asset class fails to deliver your portfolio should continue to rise. A diversified portfolio helps to bring that balance in the volatility that we always get in one asset class. I know this is not a new concept and every one of us who are into investment knows the true power of diversification. If we talk about today investors have so many options to choose from also helps us to create that diversified portfolio that we wanted to create.

![image.png](https://files.peakd.com/file/peakd-hive/codingdefined/23u5vxBdSxTUYFNVfoWJKnnjA8xPa3T9eUQEXooNdR6fLQrm4SBj5BcBfHewr6HJaakP3.png)
PC: Pixabay.com

In simple words, diversification is actually the simplest way to boost the returns whereas at the same time it reduces the risk to a great extent. It disallows us to keep all our investment in one egg and thus protects us in the times like these when both the Crypto market and Stocks market are bleeding.

So today I was going through my portfolio to know, how diversified my portfolio is:

I have been investing in 8 asset classes and thus the percentage of all looks like below. As you can see my major investment is in real estate which I have done 8 years back, now since that is done I am now increasing my Mutual Fund as well as my Gold portfolio. My major portfolio is in Hive and thus it is increasing its value based on the Hive Price. I have some liquid emergency fund in the form of FD and savings as well as I am keeping my debt retirement fund as a form of Provident Fund. Last but not least is Insurance which includes the LIC as well as some petty investment. I have included it in the asset class because again it serves as debt plus gives me insurance cover.

![image.png](https://i.imgur.com/V0KMEkJ.png)

The portfolio by no means is a very balanced portfolio and thus I am working on improving it and thus giving all of these asset classes a lift. My main aim is to keep the Real Estate, Mutual Fund, Gold and Crypto as equal as possible along with building a nice emergency fund. For me, every asset class is linked with one or more goals. Like Crypto is mainly for my Child's future and I will touch it only after 15 years also some part of it is for building a home which is again after 8 years. So I have a long term view of my crypto portfolio. 

Real estate, some part of mutual fund and the provident fund is for my retirement and thus again it will be after 20 years. Yeah, I am not planning for an early retirement till now, though I wanted it so badly. Again the Gold is for my child marriage and thus stocks are my playground for some havoc goal. Some mutual fund investment is for my travel goals which are mainly parked in liquid and debt funds so I can take our whenever I want it.

As I said it is not the best portfolio, but again it's getting better as the day passes because I am learning and thus helping me to build that portfolio that I always wanted for.Any suggestions are most welcomed.

Posted Using [LeoFinance <sup>Beta</sup>](https://leofinance.io/@codingdefined/how-diversified-my-portfolio-is)