Balancing Risk in Your Portfolio ehow.com

I have decided to take the article about balancing risk in a portfolio because i have begin to invest my money on the stocks market. One way to reduce the risk while still investing in stocks is to purchase a widely diversified mutual fund instead. An index fund is a good choice because it holds all of the stocks in the index.. The key to balancing risk in a portfolio is to tailor investments to your specific needs. . Everyone has different needs and a different risk tolerance, and it is important build a portfolio based on those factors.