In the very first episode of Money Made Simple for 2024, Jennie and Liv discuss a very important topic which savvy investors will be all over... diversifying your portfolio! For both KiwiSaver and non-KiwiSaver investments, it's super important not to put all your eggs in one basket. We explain how diversification works, why you should do it and how to make sure your investments have the best chance of success over the long term (spoiler alert - it's super easy!).

This week's episode covers:

• What diversification means when it comes to investing
• Diversifying within asset types and across asset classes (don't worry, we explain the jargon here!)
• An example of investing all your money in a particular share vs in an index fund. And the interesting results over 20 years!
• What happened to the markets during the COVID pandemic
• How to build a diversified portfolio 
• An introduction to passive vs active investment approaches
• Loss aversion theory - and why it's important to understand for success

Resources we mention in this episode:
Find Mercer's Periodic Table of Investments here.

Once you've listened to this episode, we hope that you'll be better set up to shape your own investment portfolio for long-term success. You'll understand why following a diversified, passive investment approach can be the best option to secure your financial future.

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Disclaimer: This podcast contains personal opinions and is intended to provide educational information only. It doesn't relate to your particular financial situation or goals and is not financial advice or recommendations. Simplicity New Zealand Limited is the issuer of the Simplicity KiwiSaver scheme and investment funds. For product disclosure statements please visit Simplicity's website simplicity. kiwi.