Diversification is the act of, or the result of, achieving variety. In finance, and investment planning, diversification is a portfolio strategy combining a variety of assets to reduce the overall risk of an investment portfolio.
Proper diversification will optimally combine non-correlated asset classes in such a manner that company specific risk, industry risk, market risk, and [...]
Entries Tagged as 'over diversification'
Define Diversification
April 23rd, 2010 · 3 Comments · Diversification, Investment Planning, Online Investing For Dummies, Portfolio Management, Risk Management
Tags: asset classes·asset diversification·asset groups·bear markets·bull markets·company specific risk·define diversification·Diversification·finance·geopolitical risk·industry risk·invest·investment assets·Investment Planning·investment portfolio·market risk·Online Investing For Dummies·over diversification·portfolio·portfolio manager·portfolio returns·portfolio risk·portfolio strategy·portfolio volatility·preserving capital·proper diversification·risk·stocks·under diversification·volatility
Are Your Returns Suffering From Over Diversification?
February 22nd, 2010 · 1 Comment · AIP Money Management Tips, Diversification, Portfolio Management
AIP Money Management Tips
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 [...]
Tags: Arbor Investment Planner·asset allocated portfolio·Asset Allocation·company specific risk·industry risk·over diversification
Diversification – The Critical Element of Portfolio Management
August 8th, 2009 · 1 Comment · Diversification, 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: 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
