Financial Services Sales Agent how-to

How to Build a Diversified Portfolio

Diversification helps manage risk.

Updated By the Career Education Institute Curriculum Team
Quick answer

Diversification helps manage risk. In short: set; choose; diversify, then complete the remaining steps below.

Step by step

  1. Set target allocation based on goals and risk.

  2. Choose stock, bond and cash investments.

  3. Diversify across sectors and regions.

  4. Consider costs and taxes.

  5. Document the recommendation.

  6. Review regularly.

Safety reminders for financial services sales agents

  • Follow FINRA and SEC rules
  • Protect client data
  • Avoid conflicts of interest
  • Manage stress during volatile markets

Stock · Bond · Mutual fund · ETF · Portfolio · Asset allocation: see the full financial services sales agent glossary.

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