Diversifying your portfolio is an important step to consider, depending on your level of sophistication and resources. Generally, asset allocation is the most important factor in determining your portfolio risk and return. You should choose an asset allocation that matches your risk tolerance, time horizon, and financial goals. It can be helpful to use online tools or consult a financial advisor to help with this process. Within each asset class, it is also important to diversify across sectors, regions, and styles. For example, within stocks you can diversify across different industries, geographies, and styles. Within bonds you can diversify across different maturities, credit ratings, and issuers. Additionally, alternative investments such as hedge funds, private equity, venture capital can offer higher returns and lower correlations than traditional investments. However, it is important to understand the risks and rewards of these investments before allocating any funds.