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Even with the best intentions, it's easy to make mistakes when **_diversifying your investment portfolio_**. One common pitfall is over-diversification. While spreading your investments across multiple assets is good, spreading them too thin can dilute your returns. If you have too many investments, you might not be able to track them effectively, and the added complexity can outweigh the benefits of diversification. Another mistake is failing to rebalance your portfolio. As your investments perform differently, your asset allocation will shift. Without rebalancing, your portfolio could become more or less risky than you initially intended. This is why regular reviews and rebalancing are important.
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