Saturday, September 24, 2011

Investment Diversification

Investment diversification is achieved only to an extent by the quantity of securities within the portfolio. It’s accomplished mostly by the asset classes in the mix, as well geography.

Many investors buy several mutual funds and then believe they are adequately diversified. But they merely often have duplicated much of their portfolios, adding the same securities with each fund holding.

I find that indexed funds or exchange traded funds (ETFs) provide full diversification, and at lower cost. ( See the Earl J Weinreb NewsHole® comm

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