When investing money, people try to spread out their investments as much as possible. Thus in the event of something going wrong with one investment, you do not lose all your money. But can you over-diversify your investments?
Warren Ingram, Personal Financial Advisor and Executive Director at Galileo Capital says diversifying your money as much as possible is not always the best decision.
A lot of the time, the temptation is not to have all of our eggs in one basket, so we but every basket we possibly can - and we fill it as much as we can. That is not always rational.— Warren Ingram, Personal Financial Advisor and Executive Director at Galileo Capital
What is important to note about a tax free saving accounts is they can hold an index tracker, they can hold an exchange traded fund fund, it can be a unit trust. So you are not restricted just to one type of investment in a tax free saving accounts.— Warren Ingram, Personal Financial Advisor and Executive Director at Galileo Capital
When you are thinking about investing into a tax saving account, Ingram says its good not be too diversified. But you should have sufficient diversification.
If you are putting money into tax free saving, make it a long term investment.— Warren Ingram, Personal Financial Advisor and Executive Director at Galileo Capital
It shouldn't be something that just generates interest for example, which is in a really short term - one to three year investment. You're looking for five to 10 year investments, which means largely shares.— Warren Ingram, Personal Financial Advisor and Executive Director at Galileo Capital
Listen to the full conversation below:
Enter your email address in the form below to receive a newsletter containing the most-read articles of the week from Bruce Whitfield’s The Money Show every Friday morning in your inbox.
Recommendedby NEWSROOM AI
Arabile Gumede interviews Tourism Business Council of South Africa CEO Mmatšatši Ramawela.
Standard Bank's Sibongiseni Ngundze, explains what happened and says branches will stay open until the last customer is served.
Arabile Gumede interviews Sugar Creek Wealth personal finance expert Gerald Mwandiambira.
Arabile Gumede talks to Cyril Mbatha (Unisa Graduate School of Business Leadership) and Cas Coovadia (Banking Association of SA).
Freedom Under Law argued in the ConCourt why National Prosecuting Authority boss Shaun Abrahams appointment was unconstitutional.
Botswana (34th) and Namibia (53rd) are squeaky clean in comparison. Bruce Whitfield interviews ENS Africa's Steven Powell.
NPA boss Shaun Abrahams announced on Friday that the state will reinstate fraud and corruption charges against Jacob Zuma.
The former principal of the school in Pinelands in Cape Town allegedly used the money for a holiday and golf membership.
A caller to The Eusebius McKaiser Show wanted to set the record straight about attacks on white farmers in SA.
Premier Helen Zille talks about the Western Cape government's work on land reform and how far along it is.
The Recyclers remember Ian McPherson, who was stabbed to death in Fish Hoek on Tuesday.
Home Affairs Minister Malusi Gigaba responds to a viral video of employee on her phone when she should be working.
The Money Show’s Bruce Whitfield interviews Dr Adrian Saville, Professor at Gordon Institute of Business Science.