A smaller investor can often globally diversify at a lower cost than in their domestic market. The most common criticism of diversification you might hear is it's for people who don't know what they're doing. Through careful diversification, discipline and maintaining a level of flexibility, financial advisers can help ensure that a single sector doesn't have a disproportionate influence on your investment outcome. Nick Stewart is a Financial Adviser and CEO at Stewart Group, a Hawke's Bay-based CEFEX certified, independent financial planning and advisory firm. You should seek financial advice specific to your circumstances from an Authorised Financial Adviser before making any financial decisions.

Source: New Zealand Herald April 09, 2021 18:00 UTC