How diversification affects returns

Diversification page

We’re taking portfolio insights to the next level

Diversification is widely regarded as a key tool for managing investment risk. But how does this apply to Mintos? For example, when can we consider a portfolio as being “diversified”? And most importantly, – what effect does diversification have on returns? To help investors make better investment decisions, we set out to answer these questions.

Introducing the Mintos Diversification Score

To help investors better manage their risk through diversification, we decided to create a formula that would evaluate the scale of diversification within a Mintos portfolio, based on general investment theory and our expertise in loans as an asset class. This formula gives us the Mintos Diversification Score. With this score, investors can gain insights into the parameters that matter most, and how to adjust their portfolio to improve diversification.

Diversification and returns

We’re proud to launch a new diversification page on our website that shows how diversification affects portfolio returns. The results show that higher levels of diversification can effectively mitigate risk on Mintos, in line with general investment theory.

How do you score?

The best part is, you can now get your individual diversification score directly to your inbox. Sign up for our newsletter (if you haven’t already). You’ll get monthly updates from us, plus tips on how to improve your score to mitigate risk.

Take me to the Diversification page

If you have any questions, let us know in the Mintos Community. We’re looking forward to hearing from you!

Share:

Before writing a comment, please read Mintos netiquette