Diversification and Asset Classes
Protecting Your Investment Eggs
We’re talking about a top-down strategy. Asset allocation means dividing your investments among broad asset classes, such as equities (stocks), fixed income (bonds) and cash accounts. You can further dissect specific sub categories, adding multiple individual investments to adjust your strategy to match your risk tolerance and financial goals. This more specific selection is called diversification.
Spreading your investment eggs across multiple baskets can help to manage risk.
Company size does matter when deciding where to invest. What constitutes a large, small, or mid-size company? What are the pros and cons of growth versus value investing styles? Why might you consider including both in your investment strategy? We’ll uncover the differences between domestic, global and international funds. Discover how sector investing can focus your diversification decisions and introduce you to a few of the market indices that are used by investors as performance benchmarks.
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Diversification can be a beneficial investment strategy. By spreading your money across multiple asset classes, sectors and geographic areas, you may be able to decrease your chance of experiencing large market swings while increasing the potential for higher returns. We can show you how to get started.
Diversification and Asset Classes Articles
Diversification and asset allocation do not protect against losses or guarantee investment growth.