Sentences with phrase «diversify among asset classes»

As an alternative, the investor could still choose the same asset classes, but now can diversify among those asset classes.

In fact, some estimates say that a diversified mix of assets in a portfolio is responsible for 90 % of its long - term returns.2 Everyone's retirement goals and risk tolerance varies, but diversifying among asset classes can help create customized strategies to achieve individual needs.

Form a prudent asset allocation based on this philosophy: Asset allocation is how a portfolio is diversified among asset classes.

Not exact matches

However, within a given portfolio, an investor can maximize return for a given level of risk by diversifying among several uncorrelated asset classes.

So diversifying among the three asset classes brings balance to your account.

It's also important that you diversify among different asset classes.

You can reduce risk associated with individual stocks, but general market risks affect nearly every stock, and so it is also important to diversify among different asset classes.

Keep in mind the goals of diversifying among market segments, which is to reduce the major risks of the major asset classes (stock market risk for stocks and interest rate risk for bonds).

They will then diversify among investments within the assets classes, such as by selecting stocks from various sectors that tend to have low return correlation, or by choosing stocks with different market capitalizations.

If you're not sure whether your portfolio is sufficiently diversified, you can plug the names or ticker symbols of your funds or ETFs into Morningstar's Instant X-Ray tool, and you'll see how your various holdings break down by, among other things, asset class, market sector and investing style.

Allocation of assets among asset classes may hurt performance, and efforts to diversify risk through the use of leverage and allocation decisions may not be successful.

One: Academic research has reached an overwhelming consensus that investors have better long - term outcomes when they diversify widely among asset classes, industries, company sizes, and orientation between value stocks and growth stocks.

Diversifying among and within asset classes is one part of the equation.

Because no single asset class outperforms the others consistently, diversifying broadly among several asset classes can help even out the ups and downs in a retirement savings over time.

They will then diversify among investments within the assets classes, such as by selecting stocks from various sectors that tend to have low return correlation, or by choosing stocks with different market capitalizations.

A person's overall portfolio should also diversify among different asset classes — meaning allocating a certain percentage to bonds, commodities, real estate, alternative assets and so on.

But concentrating all your assets in your home country, even if you're diversified among sectors and asset classes, is actually more risky than holding a global portfolio.

Personally, I will continue to avoid potentially «hot» investments and focus on maintaining a broadly diversified portfolio with low correlations among asset classes.

Even though all the assets in a dividend growth portfolio are in the single asset class stocks, we saw above how you can mitigate risk to your dividend stream by diversifying among a variety of economic sectors, industries, companies with different dividend characteristics, and the like.

This is why you need to also diversify your investments among and within asset classes.

A better way to protect your assets is to diversify among many equity asset classes.