One effective way of reducing your risk exposure and increasing potential returns, in the long run, is to spread risks across a wide range of investments. This means holding a mixture of different types of investments which can help cushion your portfolio from downturns. Shares, bonds, cash, and property react differently in varying conditions. As such, opting for more than one asset class can help to ensure all your investments won't all rise or fall in value at the same time. You can also spread risks through geographical exposure and by going into long-term investing.