Diversification is a common investment procedure. But going about it can be complicated.
Diversification is achieved only to some extent by the quantity of stocks in a portfolio. It’s gotten mostly by asset classes in the mix, as well of geography. Where around the world investments are located.
Many investors buy several mutual funds and therefore believe they are adequately diversified. But on closer inspection, they merely have duplicated much of their portfolios and have just added the same securities with each fund holding.
I find that indexed funds or exchange traded funds (ETFs) provide the same diversification, and at lower cost.
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