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of various investments — portfolio. Financial advisors typically recommend that the
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portfolio would be diversified. A well-diversified portfolio might include a mix of
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stocks, bonds, gold, money-market funds, real estates. Ideally, the investments in
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the portfolio should balance each other in the terms of their sensitivity to various forms
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of risk. For example, some should be relatively immune to the effects of recession,
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while others should be hold up well in times of high inflation. The portfolio might also
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be selected to provide a mix of various types of return. Basically, there are two only
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ways to make more money in investment, through a capital gain or through dividend
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and interest payment. For example, a growth stock might provide a capital gain of 10%
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but a dividend of only 2%; although a high grade corporate bond might provide a capital
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gain of only 2% but a dividend of 7%. By mixing up the investment vehicles in your
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portfolio, you must can increase your chances of making money in these two ways.