portfolio

2 questions

How do I diversify my investment portfolio?

Diversification means spreading your money across different asset types, sectors, and geographies so that no single investment can wipe out your portfolio. In practice, two or three low-cost index funds covering US stocks, international stocks, and bonds are enough for most investors.
What is risk tolerance in investing?

Risk tolerance is your ability and willingness to endure investment losses in exchange for the chance of higher returns. It determines how much of your portfolio should be in stocks (higher risk, higher return potential) versus bonds (lower risk, lower return potential).