Diversification of Your Securities

Studies show approximately how many securities issues need to be in a portfolio for practical diversification. The futility of the attempt becomes evident when you realize that this pursuit is actually a vague effort for most investors.

Diversification to overcome risk varies by investor needs and characteristics. It has relatively little to do with the number of securities in a portfolio,whether there are thirty or 100 or more invested.

Moreover, investors also tend to seek diversification by purchasing several mutual funds. However, in doing so, they may be duplicating a good amount of their portfolios. (See the Earl J. Weinreb NewsHole® comments and @BusinesNewshole at Twitter.)