# Diversify your portfolio

Diversifying a portfolio makes sure that its value is not too volatile, because [financial markets are random](fa2k).

Buy funds representing the market as a whole (industry sectors, regions, etc.) instead of individual stocks, remembering to [buy when the prices are low](uxjt).

Your portfolio should be a combination of:

- A global stock market index fund to provide global exposure.
- A domestic stock index fund to represent your home‐country stock market (or the country where you plan to retire).
- A domestic bond market index fund to stabilize the value of the portfolio.

:finance:
