There’s no such thing as a sure thing. That’s why it’s so important to help mitigate risk by having a well-diversified mix of investments.

Different asset classes perform in different ways at different times, so it helps to own investments in each. (When some are performing poorly, hopefully others are performing well.) Don’t just diversify across asset classes (stocks, bonds and cash), but also within them. To minimize risk, invest in a mix of sectors, industries and company sizes when it comes to stocks, and in a mix of corporate, municipal and government bonds.

Take a look at this illustration of how different asset classes perform differently from year to year. One year, one type of investment may be on top—but chances are, things will change the following year. For example, in 2002, small-cap growth stocks lost more than 30% of their value on average; in 2003 they gained almost 50%.

The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The type of savings and investment strategies mentioned may not be suitable for everyone. Each investor needs to review a security transaction or strategy for his or her own particular situation. The examples mentioned are for informational purposes only and not intended to represent results you should expect in the future. Data contained here is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed.