Concentrating capital in a single platform —no matter how excellent— exposes the entire portfolio to specific operational risk.
A reasonable allocation distributes across:
- **Three to five different platforms** with different jurisdictions. - **Mix of models:** tokenization + SPV + regulated crowdfunding. - **Mix of geographies:** no single country represents more than 40% of the portfolio. - **Mix of asset types:** residential + commercial + logistics/industrial.
Diversification doesn't maximize individual returns but reduces final outcome variance, which is the goal of a well-built fractional real estate portfolio.