Diversification is an integral part of the strategy for reducing risks when investing in high-yield investment programs (HYIPs). Let's take a closer look at this concept because many people do not engage in allocating their funds, or they don't know how to do it correctly.

What is diversification in HYIPs?

Diversification involves spreading capital across various projects with different timeframes to minimize losses. The standard diversification scheme is to invest 10% of the capital in 10 projects. However, this does not mean you need to strictly adhere to this scheme. Your portfolio can include anywhere from 5 to 15 projects with varying investment amounts.

Common wisdom metaphorically illustrates the principle of diversification – "Don't put all your eggs in one basket." Dropping one basket will cause you to lose all your eggs.

Hasty Diversification

It is also unwise to make investments indiscriminately in all new HYIPs. Before adding a project to your portfolio, consider the marketing and the timelines of investment plans, and evaluate the risks realistically.

Factors that increase risks:

• Long tariff plans;
• Ill-conceived tariff plans;
• Deposits paid at the end;
• Excessively high interest rates.

Diversification Rules

• Try not to allocate more than 10% of your portfolio to each project;
• Approach the selection of projects very carefully; do not chase the quantity of HYIPs in your portfolio;
• If there are no worthy projects available, it's better to keep the funds received from other HYIPs in your wallet;
• Try to have projects with different profitability in your portfolio; do not focus solely on high-interest projects.

The best way to control your portfolio and the level of diversification is by using an investment tracking system.

By following these rules, you can achieve good results. Best of luck to you!