Diversification matters. Yet it’s an unfortunate reality that many investors don’t know how to properly diversify their investment portfolios. And some of those who do have lost faith in diversification since the market crash in 2008.
That’s where you can make a big difference, as their personal financial advisor or the financial professional associated with their employer’s retirement plan.
You can make diversification easier to understand by explaining it in terms of your client’s goals and financial situation. This will make it “real” to them.
Talking points you can use:
Few investors really understand how to diversify the investments in their portfolios, and many are looking for help. You can build and strengthen valued relationships by extending personal assistance. Of course, that’s not always possible and you’ll likely have some “do-it-yourself” clients who prefer to choose their own investments, with a little guidance from you.
Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses and summary prospectuses, which can be obtained from a financial professional and should be read carefully before investing.
Content contained herein is not intended to serve as impartial investment or fiduciary advice. The content has been developed by Capital Group, which receives fees for managing, distributing and/or servicing its investments.