Barinaalice
New Member
The main aim of any type of investment is to earn profits or interests. The most important thing required to maintain and balance an investment portfolio is investing money in different types of investments like deposits, shares, bonds etc instead of investing money only in one type of investment. This is known as diversification. This is very important because if one loses or does not gain much profit from one type of investment also there are always chances to earn high profits from the other investments. One should also make an investment depending upon number of factors like their income, family situation, their age etc. People who do not have any financial responsibilities have more chances to take risks in investments like shares and bonds.