In investing, there are two great big facts you can't ignore:

1. Most investments are pretty risky.
2. Predicting the future is tough (unless you're Mystic Meg, and even she didn't seem too good at it!).

Once you accept them then it's your responsibility as an investor to try and reduce their impact upon your ability to achieve your investment goals.

"Have you set your investment objectives? If not check out the previous chapter"

Investors learnt one big lesson in 2002: you need to hold a diversified portfolio. As with a lot of things in life, balance is the key to success in investing. Being a couch potato isn't good for you, however being in the gym 24/7 isn't so great either. It's the same with your investment portfolio; spreading your money across a range of investments will reduce the risk while exposing you to a wide range of opportunities. We think the first thing you should know about building a portfolio is about getting a good balance - or what's technically called diversification.

TOP 10

1. Investment Property

2. Unit Trust

3. ISAs

4. Share Dealing

5. UK Investment

6. Investment Trust

7. Offshore Investment

8. Investment

9. Investment Advice

10. ISA Investment

invest in an ISA open a savings account invest in shares invest in a trust fund