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Diversification

Why owning more funds is not the same as being diversified.

Diversification means reducing dependence on a single source of risk. Adding another fund does not automatically diversify a portfolio if both funds own many of the same securities or express the same sector, style or factor exposure.

Look through the fund names to holdings, sectors, market-cap, style, factor and macro sensitivity. MyFundGuide's portfolio X-ray explicitly checks overlap and hidden concentration.

Educational content only. It is not a personalised investment recommendation, tax advice or a guarantee of future returns. Verify current scheme documents, tax rules and regulations before consequential decisions.