Periodically Monitor Your Portfolio: Diversification is not a once-off. Periodically monitor your portfolio to ensure that it goes along with your investment objectives and risk tolerance. Rebalancing may be necessary... Read More
Author: factsheet22
3. Look for geographic diversification: Invest in funds that track both domestic and international markets. Because the global economic conditions differ, international investments also provide higher returns. 4. Index funds or... Read More
. Diversification across different sectors: Under the equity funds, consider the funds that specialize in different sectors such as technology, healthcare, finance, and consumer goods. If one sector is not... Read More
guarantees profits. Market conditions may still result in losses. 2. Diversification is Too Much: Too Many Funds Can Bring Over-Diversification brings forth the loss of the positive effects of diversification benefits.... Read More
Some of the common myths on diversification are: 1. Diversification Will Automatically Result in Returns: As much as diversification can reduce risk, it never guarantees profits. Market conditions may still result... Read More
, a more robust portfolio is created. Diversification cannot completely eliminate all the risks; however, it is an effective tool toward more stable and rewarding outcomes over time. It is... Read More
Diversification cannot completely eliminate all the risks; however, it is an effective tool toward more stable and rewarding outcomes over time. It is crucial for an investor who wants to... Read More
Risk Reduction: The most significant advantage of diversification is the reduction of risks. For example, if the sector of technology is going down, then the losses can be curtailed by... Read More
In mutual funds, there are diversifications at two levels: 1. Within the Fund: A mutual fund usually invests in a wide range of securities, such as stocks, bonds, or real estate.... Read More
It involves making an investment across various assets or asset classes for reducing the risk involved. The logic is simple: if one does not put all his eggs in one... Read More