The 10% Rule - Diversifying Investment Risk

The 10% Rule If you're making the move from saving money in cash to investing in other asset classes, it's vital to understand risk. Your attitude to risk will influence which investments you choose and how big a proportion of your portfolio they account for. One way to address risk is diversification. This means investing relatively small amounts in different asset classes, rather than a large amount in just one investment. Some people refer to diversification Peer to Peer Lending as the 10% rule Peer to peer lending is a relatively new, and growing, asset class. (P2P Crowdstacker is one of a number of platforms that allows investors to lend money to credit checked and fully vetted businesses. Crowdstacker recommends that investors diversify their investment by splitting their money between several businesses or borrowers. Read the full article about diversification by our guest writer, finance journalist Emma Lunn, as well as other topics in this series at www.crowdstacker.com/knowledge-hub CROWDSTACK R Your capital is at risk if you lend to businesses through peer to peer lending. Peer to peer lending is not covered by the Financial Services Compensation Scheme FSCS. IK