Does it make sense to hold your investment portfolios with different financial institutions in case one runs into trouble? In the world of investing, the ways in which you can diversify are endless- across currencies, countries, industries, asset classes and more. When done in a structured, meaningful way it can protect and improve the performance of your investment portfolio. But what about diversifying across financial service providers? Does it help or hurt?

Why do people choose more than one broker?

As investors we seek to make the best investment decisions with the intention of maximizing our returns. However, the reality is that with so much information and so many investment options available, it can be difficult for an individual to sort through this information to make an investment decision. As a result, many seek investment advice from persons they trust.

Important questions to ask when someone yells “diversification!”

What are the metrics of diversification that really matter?

Diversification; be specific

“Diversification” - hands down the most overused term in any industry. Why do people love this term and why is it so universally revered? Anyone that owned a small number of Tesla or Apple shares a few years ago is certainly wishing they did not “diversify” so much. Meanwhile people who owned Exxon or Uber shares are probably happy they own other assets and limited their exposure to those stocks.

The thought of shopping evokes different reactions from people, some people’s expressions light up at the thought of going shopping while other people are unable to hide their grimaces. Whether you are shopping out of necessity or just for therapy, most of us are searching for the best value for money as well as maximizing our convenience.