AIP Money Management Tip
Over diversification is a serious mistake made by many investors. Some investors have learned the harmful effects of under diversification and mistakenly believe that the more diversification the better. It has become common to diversify to the point of hurting your investment returns. This is particularly harmful in the current environment where [...]
Entries Tagged as 'over diversification'
Are Your Returns Suffering From Over Diversification?
February 22nd, 2010 · 1 Comment · AIP Money Management Tips, Portfolio Management
Tags: Arbor Investment Planner·asset allocated portfolio·Asset Allocation·company specific risk·industry risk·over diversification
Stocks, ETFs, and Mutual Funds: What is the best mix?
September 15th, 2009 · No Comments · Investment Planning, Portfolio Management, Risk Management
By Ken Faulkenberry
The investment environment has changed drastically and passive investing is no longer an acceptable alternative. Many Investors can use some guidance in investment planning decisions. One of those decisions is which investment vehicles best suit the individual investor’s needs. Individual stocks or bonds, exchange traded funds (ETFs), and mutual funds are the most [...]
Tags: active asset allocation strategy·diverisficatioin·eft investing·etf portfolio·ETF sector funds·etfs·model ETF portfolio·model investment portfolio·mutual funds·over diversification·stocks·what are etfs?
Diversification – The Critical Element of Portfolio Management
August 8th, 2009 · 1 Comment · Investment Planning, Portfolio Management, Risk Management
By Ken Faulkenberry
Diversification is the single most important element of investment planning. Diversification is a portfolio strategy that reduces risk by combining different investments that are not correlated. The volatility (risk) of the portfolio is reduced because not all asset groups, industries, or stocks move together. The goal of diversification is to reduce risk.
Lack of [...]
Tags: active asset allocation strategy·asset allocated portfolio·Asset Allocation·asset groups·company specific risk·diversification·etf investing·etf portfolio·etfs·fund management risk·industry risk·Investment Planning·lack of diversification·market risk·model ETF portfolio·model investment portfolio·over diversification·Portfolio Management·portfolio strategies·reduce risk·risk
