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Educational content, not investment advice.

Souq Dailyسوق ديليSouq Daily

Lesson 6 of 104:003 Sources

Diversification and building a portfolio

Video coming soon

Presented by NourIn Arabic, with captions. Other languages are coming.

Educational content, not investment advice. Nour explains how markets work. She never tells you what to buy or sell.

Diversification means holding assets that behave differently, not just many similar ones.

  • SEC: spreading money among different investments to reduce risk is diversification; asset classes historically haven't moved together.
  • Stocks: highest risk and return; bonds: less volatile, more modest; cash: safest but inflation risk.
  • Teaching example: $10,000 at 60/30/10. After stocks rise 20%, stocks are ~64%; rebalancing sells $480 of stocks and adds $360 and $120.
  • Rebalance on a schedule (every 6 or 12 months) or when weights drift by a preset amount.

Quick check

Three questions. Pick an answer to see why.

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  1. 1.Which portfolio is genuinely diversified?

  2. 2.A 60/30/10 portfolio of $10,000: stocks rise 20%, others unchanged. Stock weight is now about…

  3. 3.According to the SEC guide, what is rebalancing?

Sources

Every fact in this lesson is backed by the sources below.

  1. 1.SEC/Investor.gov – Beginners' Guide to Asset Allocation, Diversification, and RebalancingDefinitions of diversification, asset allocation, rebalancing; asset classes historically not moving together; stocks/bonds/cash risk-return; inflation risk of cash; three ways to rebalance; every 6 or 12 months or by preset percentage
  2. 2.Investor.gov – Investor Bulletin: Index FundsAn index fund tracks a basket of many securities (diversification within an asset class)
  3. 3.Investor.gov – Investor Bulletin: How Fees and Expenses Affect Your Investment PortfolioTransaction fees are charged per trade — a reason not to rebalance too often

Educational content, not investment advice. Risk warning: trading forex, CFDs, gold and crypto carries a high level of risk and may not be suitable for everyone. You can lose more than you put in. Souq Daily is an education platform. Nothing here is investment advice, a recommendation or an offer, and past performance does not predict future results.