3. Invest in a Mix of Mutual Funds and Exchange-Traded Funds

Using ETFs and mutual funds are simple ways to choose asset classes that help diversify your portfolio.

Begin your mutual fund by investing in a few companies that you trust, and even use daily. Other alternatives include commodities, and real estate investment trusts (REITs).

The key to ensuring that your portfolio is adequately diversified is to look at what’s inside each fund and its weightings. So, don’t confine yourself to your home base; extending your risk will allow you to gain greater rewards.