Like many investors, I've seen some huge gains in ISA and SIPPs recently. Thanks to the AI ​​boom, many of my holdings have skyrocketed.

While this is obviously great, I'm a little concerned about the pace of gains recently (and the potential for a sharp pullback). As a result, I have been thinking about how to remove risk from my investment portfolio.

Take some profits

I gave this issue a lot of thought last weekend. I've come up with a three-part strategy designed to reduce my overall risk levels (and help me sleep better at night).

The first part of this strategy involved downsizing or selling a few of my holdings that had gone up completely. I've done this with a few different stocks and funds.

For example, I sold my AI fund. I thought I had already been exposed to a lot of the fund's holdings (eg Nvidia) in other funds or directly, so this increases risk levels.

This freed up some cash.

Rebalancing my portfolio

The next part of the strategy involved redeploying some of that cash into areas of the stock market that have relatively little to do with technology and AI. Here, I put money into European stocks and the healthcare sector via ETFs.

The ETF I went with was… iShares Core MSCI Europe UCITS ETF. It has some technology but looks very different from a Standard & Poor's 500 Or a global index fund.

The healthcare ETF I chose was… Xtrackers MSCI World Health Care UCITS. This gives me access to a full range of world-class healthcare companies.

I think these two products are a good hedge against the collapse of AI. If technology stocks decline, these areas of the market may provide some protection.

Consider defensive dividend stocks

The final part of my strategy, which is still a “work in progress,” is to allocate some capital to more defensive individual stocks. Here, I'm looking to increase my exposure to solid stocks that are unlikely to explode in an AI-related downturn.

Now, I'm still doing my research here, but one stock that looks very interesting to me is… Coca-Cola HBC (LSE: CCH). listed on London Stock ExchangeIt is a major US-listed packaging partner coca cola.

This stock caught my attention for two reasons. Firstly, it has seen a significant pullback in recent months and now looks attractively valued again.

It is currently trading at a forward-looking price-to-earnings (P/E) ratio of 14. As for the dividend yield, it is around 3.5% (considering 2026 dividend forecasts).

The second reason is that I noticed that two of the company's directors had recently purchased shares. In October, two board members invested around £385,000 in the company.

Insiders buy shares for one reason only – to make money. So, the buying activity here caught my interest.

Of course, this stock has its own risks. These include geopolitical disruptions, supply chain issues, and changing consumer preferences.

I think it looks very attractive at current levels. In my opinion, it's worth a closer look.