The good news for individual investors is that they can
achieve effective diversification across multiple sources of returns without having to venture into alternatives.
Avoid this by owning high - quality investments and
use effective diversification with high - quality fixed income investments, mixed with appropriately priced stocks.
Effective diversification means understanding how to diversify your portfolio to reach each of your financial goals, and how that diversification changes along with the changes in your life.
The team analyzes a global universe of over 15,000 companies to identify attractive opportunities, applying index - relative constraints at the stock, sector and regional level in order to
ensure effective diversification, to manage risk and to avoid any extreme outcomes.
«For equity and balanced investors, U.S. Treasury securities
offer effective diversification when it's most important, during times of extreme financial uncertainty,» said Gastineau in a statement.
This greater range of variety and choices can lead to a broader as well as
more effective diversification if intentionally ETFs are chosen which do not correlate positively.
At StashAway, we devote ourselves to identifying the right mix of asset classes for a given economic regime, because the appropriate selection of asset class mixes is vital for a portfolio to achieve
effective diversification over the long term.
This appears unlikely, so
an effective diversification strategy should include a variety of asset classes, regardless of how diversified the basket of international equities might be.
Effective diversification is ensuring you have exposure to investments that behave differently in various market conditions and buffer your overall portfolio against extremes of volatility and risk.
The importance of
an effective diversification can not be stressed enough.
Executing
an effective diversification strategy requires a significant minimum investment to start.
Life insurance can be
an effective diversification tool.