Getting diversification right for your portfolio is one of the best ways to deliver strong returns. Diversification can mean spreading your investments across industries and geographies.
It's a good idea to expand your portfolio into companies that operate in different industries. If you invest like everyone else, then you'll get similar results.
Here are three shares that I think would help diversify a portfolio:
Healthscope Ltd (ASX: HSO)
Healthscope is Australia's second largest private hospital operator. I think Healthscope could be a decent investment because it has a good pipeline of hospital construction and expansion projects.
In the long-term Healthscope should benefit from Australia's ageing population and this should mean more patients through the door of Healthscope's facilities, which should boost revenue and profit.
Vanguard All-World ex-U.S. Shares Index ETF (ASX: VEU)
Vanguard runs some of the lowest-costing exchange-traded funds (ETF) available to ASX investors. It offers various geographically-focused ETFs, the one I've mentioned gives exposure to various share markets around the world except for the US market.
This means it has some of the top European and Asian companies within its holdings such as Nestle, Toyota, HSBC and Samsung.
This ETF may not have generated large returns in recent years, but I think Asian companies could grow strongly as their countries kick on and grow faster than western economies.
Appen is one of the ASX's most exciting tech companies. It provides data for some of the world's largest tech companies and helps them improve their offering with data for machine learning.
The company is on track to be the best in the industry and perhaps the go-to for any tech company. In its recent report it revealed 50% profit growth, which was a great result. As AI gets more advanced it's possible Appen could benefit significantly.
Foolish takeaway
All three shares are interesting opportunities. At the current prices I'd be inclined to go for Healthscope due to its defensive nature and the amount of hospital beds it's on track to add over the next two years.
