We form an investment portfolio. Risk diversification

Each investor is interested in obtaining a stable profit with minimal risk. Each trader thought about how to secure his capital. To this end, diversification is underway. The objective of this procedure is to minimize all economic risks that could potentially lead to financial losses. The essence of diversification is the distribution of investment funds in various projects. Just like in the well-known floorboard - “you can’t put all your eggs in one basket”.


The market is designed in such a way that it is impossible to build a 100% effective forecast on it. Accordingly, it is impossible to completely avoid losses. The investor’s task is to form an investment portfolio in such a way that as a result (minus losses), it would still remain in profit. Cash losses from one investment should be offset by the total profit from other projects.

Investment diversification techniques

Instrumental. This approach involves the distribution of the deposit between several projects. For example, 30% in Forex, 30% in real estate, 25% in shares of promising companies, and the remaining 15% in high-risk areas, experimental projects with a large percentage of profit. Areas of activity should not overlap, i.e. need to invest in directions independent of each other. In this case, problems in one area will not affect the situation in another sector.

Institutional. Within one instrument, investments will be distributed among various companies. For example, if an investment is made in accounts managed by other traders, that is, money needs to be distributed between different managers. It is also recommended to open accounts with different brokers.

Risky. Within the framework of one instrument, the distribution of the volume of investments by various risk levels should be carried out. Consider the example of managing accounts. A competent investor should allocate his funds approximately as follows: 33% for low-income accounts, 33% for balanced decisions, 33% for risky, but with high profit. Thus, if a part of the funds transferred to the manager with aggressive trading is lost, the total income from the investment portfolio will make it possible to make a profit from 66% of investments in less risky instruments.

Risk classification

Existing risks are conditionally divided into two categories: systemic and non-systemic. The first category includes risks that affect the entire economy as a whole, which affects almost all areas. A typical example is the global financial crisis of 2008, when the world saw a decline in production and business activity.

Non-systemic risks affect a specific narrow sector in the market. For example, this may be the unforeseen bankruptcy of the company in which the funds were invested. The purpose of diversifying the investment portfolio is to protect primarily from non-systemic risks. The formation of an investment portfolio consisting of 10–15 instruments allows reducing non-systemic risks by approximately 80–90%.