Diversification is a crucial strategy to reduce investment risk and achieve stable returns over the long term. By spreading your portfolio across different asset classes like equities, fixed interest, property, and cash, you can protect your capital during adverse market conditions while benefiting from potential growth during prosperous times.

Consider diversifying across industry sectors within asset classes to adapt to changing economic conditions. You can achieve a balanced portfolio with the right mix of investments, even with a modest amount to invest and limited time. Explore options like managed funds, ETFs, or LICs to access diversified investments easily.