InvestSMART Forum 2017 - Canberra

Diversification is crucial because it helps mitigate risk and enhances the potential to achieve your financial goals. By spreading investments across various asset classes, you can protect your portfolio from significant losses if one investment performs poorly.

The InvestSMART Forum 2017 highlighted strategies such as identifying gaps in portfolios that detract from overall health and using exchange traded funds (ETFs) to gain exposure to harder-to-access asset classes.

Key speakers included Ron Hodge, CEO of InvestSMART, who discussed a 5-step plan to reach financial goals, James Carlisle, Head of Research, who talked about adding value to portfolios, and Alex Hughes, CFA, Senior Analyst, who explained the role of smaller companies in achieving investment goals.

Smaller companies can play a significant role in achieving investment goals by offering growth opportunities that may not be available with larger, more established companies. They can add diversity and potential for higher returns to your portfolio.

Exchange traded funds (ETFs) are investment funds traded on stock exchanges, much like stocks. They offer a way to gain exposure to a wide range of asset classes, including those that are harder to access, thus enhancing diversification and potentially improving portfolio performance.

The 5-step plan presented by Ron Hodge is designed to help investors stay the course and reach their financial goals. It provides a structured approach to managing investments and maintaining focus on long-term objectives.

You can download a copy of the presentation slides from the InvestSMART Forum 2017 by clicking on the link provided in the article.

InvestSMART's analysts, including experts like James Carlisle and Alex Hughes, provide insights and strategies to improve portfolio health, identify investment opportunities, and ensure that portfolios are well-diversified to meet financial goals.