Should You Diversify Your Investments or Go All-In? Here’s What a Nobel-Winning Economist Thinks

We all know the phrase “don’t put all your eggs in one basket”, which applies to many situations, including investments. But have you heard of “diversification is the only free lunch in investing”? 

The quote came from Harry Markowitz, an American economist who won the Nobel Prize for Economics in 1990 for his dissertation on the benefits of having a diversified investment portfolio.

Diversification in investing is a strategy that involves spreading your investments across different assets and sectors instead of only investing in one stock. You build a portfolio that includes a variety of stocks, ETFs, REITs, and other assets to minimise your risk.

 

Benefits of a diversified trading approach

Diversification allows investors to capitalise on opportunities arising from different markets and situations. When global crises occur, certain stocks take a hit while others prosper. 

For instance, Covid-19 saw many stocks in the travel sector take a beating while healthcare and pharmaceuticals grew. The tech sector also goes through cycles, and the second half of 2023 continues to witness its decline with layoffs across many countries. 

By spreading investments across various assets, your portfolio will be subject to fewer market fluctuations, and you may enjoy better returns while reducing your risk. 

It is also now easier than ever to access different types of assets through various brokerages. 

Whether it’s stocks, bonds, real estate, or alternative investments, diversification can help you achieve sustained, steady growth, while minimising your risk.

 

The chore of diversifying our trading

Diversifying is great, but the problem is that it may lead to us having multiple apps and accounts with different usernames and passwords. This makes it a chore to switch back and forth to open trades and monitor our positions. 

Add to that, we have to deposit money into different brokers and request withdrawals one by one. You’ll also have a tough time getting a consolidated overview of your investments since everything is scattered among different apps.

Plus, there’s also the issue of different fees with each broker and having to get used to the multiple interfaces and tools.

Long story short, we need to figure out how to diversify without getting bogged down by the inconvenience of handling too many accounts and platforms.

 

Phillip Nova offers us a way to consolidate all our trading needs into one account, one platform

Fortunately, a local brokerage, Phillip Nova, aims to solve all those issues with its multi-asset, single ledger platform. The name Phillip Nova may sound new to you, but it’s actually a rebrand of the trusted Phillip Futures we all know. The rebrand marks its expansion into stocks and ETF trading alongside its existing focus on futures, forex, and CFDs. This reflects the company’s commitment to growth and an enhanced suite of financial products.

Phillip Nova is part of the PhillipCapital Group. It lets you trade over 11,000 assets, including ETFs, stocks, futures, forex, oil, gold, and other Contract for Differences (CFDs), all on one platform, making it easy and seamless to diversify your investments.

 

Ready to take on the world of trading?

If you’re new to trading or are looking for a platform that can help you manage your diversified investments more efficiently, here are some perks that Phillip Nova offers. 

One platform to rule them all 

You can conveniently trade multiple assets on a single ledger and single platform. 

Commission fees

• SG Stocks & ETFs – 0.08% (no minimum)
• US Stocks & ETFs – 0.01% (min USD5)
• Commodities – USD0.98 for CME Micro Gold or Micro WTI Crude Oil
• Forex – 0.9 pips
• Futures – from USD0.98 for CME Micro US Indices, Gold and Crude Oil

Account fees

• No platform fees and no custodian fees.
• No fees for funds deposited through PayNow, FAST, Bill Payment, or eNETS.

Account

• Opening an account is done online and takes just 10 minutes. 
• It is completely free, and no minimum funding is needed.

User interface

• Enjoy a streamlined and user-friendly trading interface. It’s optimised for desktop, tablet, and mobile.

Get it on Google Play

Download on the App Store

Established

• Phillip Nova is regulated by MAS and has 40 years of industry experience.

 

Getting started with Phillip Nova

Phillip Nova is a dream of a platform for investors looking to diversify. Finally, we can consolidate all our trades—whether it’s stocks, ETFs, forex, and more—into just one app with a single broker. Download the app today to get started.

 

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This post was written in collaboration with Phillip Nova. While we are financially compensated by them, we nonetheless strive to maintain our editorial integrity and review products with the same objective lens. We are committed to providing the best information in order for you to make personal financial decisions with confidence. You can view our Editorial Guidelines here.