The former owner of American Mortgage Affiliates and past senior vice president of Chase Investment Services Corp., Darin Pastor now leverages more than 20 years of financial experience to the benefit of his clients at Capstone Affluent Strategies. Darin Pastor helps clients reach their financial goals through the implementation of a range of strategies, including portfolio diversification.
Here are two reasons investors should maintain diverse portfolios:
1. Consistent returns. By investing in a range of asset classes, portfolios are less susceptible to major losses from market volatility or underperformance in a specific sector. This results in more consistent returns over long periods of time.
2. Risk reduction. Though all investment strategies come with a certain level of risk, diversification, particularly into fixed-income assets, keeps the risk to a minimum. Diverse portfolios rarely lose all of their value due to market fluctuations, which makes them ideal for investors who wish to preserve capital and enjoy long-term growth without taking on too much risk.