A simple example
Owning shares in five banks gives exposure to five companies, but all remain in one industry. The number of holdings alone does not describe how varied the underlying exposures are.
What to keep in your records
Record the asset category and the underlying holdings information available from fund reports. Two differently named funds may hold many of the same investments.
A common mix-up
More accounts or products do not automatically mean more diversification. Look at what each holding represents rather than counting rows in a register. Read ASIC Moneysmart’s explanation.
