Your cookie settings

Cookies are very small text files that some websites store on your computer when you visit them.

Cookies do lots of different jobs, like letting you navigate between pages efficiently and remembering your preferences.

We use cookies on our website to make your browsing experience better. By using this website you accept our use of cookies in accordance with the settings below.

Your allowed cookies:

Strictly Necessary are always allowed by default.

Table goes here
More information about cookies

How to diversify - stocks and shares

The value of shares is influenced by 2 key things:

  • The performance of the company itself
  • The more general economic conditions, both overall and in the sector in which it operates

Economic performance of the wider market will influence the company’s future performance. If the economy is performing well, there's an expectation that companies will make increased profits and there tends to be demand for company shares, so their value rises. If the economic outlook is bleak, investors tend to move away from shares, so their values fall.

Diversifying with collective investments

One of the simplest ways to diversify is through funds or collective investments. These include unit trusts , Open Ended Investment Companies (OEICs) and Exchange Traded Funds (ETFs) . All of these invest in a variety of shares, gilts and bonds or other assets, in line with the stated aim of the fund. The exact mix depends on the overall objective of the collective investment. We’ll look at these types of investments in more detail later.

As well as diversifying using different investment types, it’s a good idea to hold a good balance of cash savings in your portfolio. An investment portfolio that's diversified can generally be expected to move significantly less and, therefore, produces more balanced returns. But remember, even well-diversified portfolios are at risk from market movements. All investments can fall as well as rise.


Important information

1. Calls to 0808 numbers are free if made from a UK landline. Call costs to 0141 numbers may vary – please check with your telecoms provider. Our opening hours are 8am-6.30pm, Monday to Thursday, 8am-6pm on Friday (excluding bank holidays) and 9.30am-12.30pm on Saturday. To maintain a quality service, we may monitor and record phone calls. Call charges

Barclays Bank PLC. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority (Financial Services Register number: 122702). Barclays Bank PLC subscribes to the Lending Code which is monitored and enforced by the Lending Standards Board. Further details can be found at Barclays Insurance Services Company Limited is authorised and regulated by the Financial Conduct Authority (Financial Services Register number: 312078).

Barclays Bank PLC. Registered in England. Registered no. 1026167. Barclays Insurance Services Company Limited. Registered in England. Registered no. 973765. Registered office for both: 1 Churchill Place, London E14 5HP. ‘The Woolwich’ and ‘Woolwich’ are trademarks and trading names of Barclays Bank PLC. Barclays Business is a trading name of Barclays Bank PLC.


Barclays Premier League

Proud sponsors of the Barclays Premier
League & the Barclays ATP World Tour Finals

Barclays APT  World Tour Finals