Diversification

Diversification
Mitigating Risk Through Diversification
We’ve all heard stories in which someone loses their entire life savings on investments that were too risky. In many cases, these huge losses are due to a single concentrated holding or a risky one-off investment. There are several things that you can do to prevent this type of loss when it comes to your investments. Because every investment has some risk involved, the only way to avoid risk completely is to stay away from investing altogether. Therefore, investors need to find some balance between risky investments and experiencing gains to make it worth their while. Diversification helps achieve that balance by mitigating the risk of investing while still allowing for a return.

Portfolio Theory of Investing
All investors are aware that with higher risk comes potential for higher reward,   but how can we lower the risk of our investments and still hope to turn a profit?  The basic principle of the portfolio theory is that you can maximize return and   minimize risk by building a portfolio of assets whose returns are not correlated.  This requires investing in various assets and industries to ensure parts of your  portfolio are not too similar.
  Investing in assets with little or no correlation prevents all areas of your   portfolio from decreasing in value if one specific industry takes a hit. With the   right mix of assets, some may even increase in value due to a decrease in  another. By diversifying your portfolio, you’re providing protection when the market gets rough, allowing the fulfillment of long-term financial goals while minimizing the risk of losing it all.

What Happens When You Fail to Diversify?
The burst of the dot-com bubble in 2000 is a great example of the importance of diversification. Prior to the burst, tech stocks appeared to be so lucrative that many viewed investing in anything else as absurd. After the bubble burst, investors were either glad they diversified or they were wishing they had. Those investing solely in tech stocks saw nearly their entire net worth disappear, while those who diversified had other assets in their portfolio to keep them afloat when the stock market crashed. In this case, as in so many others, diversification paid off.  Source: Bill Clark - MicroVentures Blog - Oct 2, 2014  Diversifying by Investing in Multiple Opportunities & a Principal Protection Hedge All of the Issuers in the iLIFE Capital Portal were chosen in part, to provide for a diversified portfolio of investment opportunities, and have been vetted through our extensive Due Diligence process. Per the sound investment advise above, a good diversification package is actually built into the iLIFE Capital Portal. Investing in multiple opportunities which all have investor friendly Deal Structures and options, then making a compensating balance investment in our asset-backed PrincipalProtector hedge opportunity, makes sound investment sense and smooths the typical peaks and valleys of your investments.
 All the Issuers in the iLIFE Capital Portal offer split units, so it is possible to subscribe to a half unit and then make a half unit (or more, per our adjustable risk adjustable return strategy) investment in our PrincipalProtector Capital opportunity.
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