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Thursday, June 21, 2018

Diversification, diversification, diversification

Portfolio building requires different characteristics to evaluate.

There are many ways to invest and different types of investments. But when looking to build an appropriate diversifed portfolio, investors have a number of different characteristics to evaluate. For example, is the investment designed to provide growth or income? Is it domestic or international? Does it have a maturity? Another consideration is whether the investment is actively or passively managed.

Sometimes, that simple, fundamental choice can make a difference in portfolio performance. During a particular market climate, one of these two methods may be widely praised, while the
other is derided and dismissed. In truth, both approaches have merit, and all investors should understand their principles.