Sentences with phrase «broad diversification between»

These types of mutual funds can be great for first time investors; within just one mutual fund, you will have broad diversification between various types of mutual funds: large cap mutual funds, small cap mutual funds, international mutual funds, etc..

Not exact matches

The more stocks you hold, the more closely your portfolio will likely match the broader market (assuming reasonable diversification between companies).

Apart from the standard diversification benefit of always having some money invested in each type of fund (as well as owning both large and small companies), the key is understanding that Upgrading's category definitions are broad enough that within each risk category there is significant variation between funds.

Modern Portfolio Theory postulates that the key to achieving an efficient portfolio is diversification between non-correlated (or negatively - correlated) assets classes — broad categories of investments that share few similarities in their performance.

The basic concepts are the same: broad diversification, using index funds with low cost, occasional rebalancing between equities (for growth), and fixed income (for ballast - stability).