Diversification is a vital technique that goals to scale back funding threat by spreading it throughout a number of investments. In a well-diversified portfolio, no single funding is accountable for the portfolio’s efficiency. Diversified belongings react otherwise to market forces, and when one asset is down, one other one is perhaps up. In consequence, the general efficiency of the portfolio is extra sturdy.

The important thing variations between Fractional Bonds and loan-backed Notes outlined above provide a chance to broaden your diversification. By investing in Fractional Bonds, you may add an asset with a special threat profile, and strengthen the resilience of your general portfolio.