. In other words, it is risk management through diversification with the hope of greater potential returns. By spreading investments in various asset classes, sectors, and geographies, a more robust... Read More
Author: Factsheet3
Meaning of Diversification Strategy in Mutual Fund Portfolios Managing risk is one of the main factors why people invest in mutual funds. Probably, no other concept found in investing can be... Read More
3. Diversification in One: Such investors feel that an investment in one diversified fund may be good. But diversification among proper asset classes and sectors mitigates better risks. Conclusion Diversification is the... 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
5. 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... Read More
. 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
How to Diversify a Mutual Fund Portfolio Here is how one can practically diversify a mutual fund portfolio. 1. Diversification across different asset classes: Invest in a combination of equity funds, bond... Read More
An investor may invest in various emerging markets that could lead to high growth rates or go for bonds to guarantee returns and income. 4. A fund can be diversified: when... Read More
. Smoother Returns: Diversification may lead to stable returns over time. It could thus avoid the experience of peak and trough from one singular investment. The volatility associated with a... Read More