Sentences with phrase «less diversification»

They fail to appreciate that even 30 or 40 individual companies provides less diversification than even one broad - market index fund.

You have six to seven times less diversification in real life than the computer thought you had.

Keep in mind that this is a tall task, as the indices have hundreds of stocks in them and our model portfolios will only have a handful, which means less diversification overall.

Notice, though, that this higher yield comes at the price of higher correlation with equities and thus less diversification.

I'd only comment that the stocks need to be properly chosen, hopefully it's obvious that 10 stocks in the same sector provide far less diversification that 5 chosen from different sectors.

Because rising inflation negatively affects the performance of both stocks and bonds, bonds generally become more equity - like amid higher inflation and thus tend to provide less diversification.

They are riskier and more volatile when compared to other mutual fund schemes since their focus is on a single sector which means less diversification and sector specific risks.

It would make sense for foreign markets to provide less diversification benefit than they used to, given that the world economy, even as it becomes less U.S. - centric, is becoming more interconnected.

In risk arbitrage, for example, you need lots of diversification while investing in high quality businesses with long runways you need a lot less diversification.

As public asset classes have become more correlated, the modern portfolio theory investment model has offered investors less diversification, more volatility and, ultimately, portfolios with risk that outmatch potential returns.

Optimizing using the S&P 500 index to represent U.S. stocks, and then actually using a growth mutual fund (that owns 75 stocks) would result in much less diversification than the report stated.

While that dampens risk, it also tends to dampen rewards and produces rather less diversification value for a portfolio.

In that sense, they provide less diversification than funds that invest across multiple sectors.

The difference is that individual bond portfolios tends to have higher costs, less diversification, and cash drag.

While they have less diversification, they believe the extra work they do will offer better performance.

This is one of the main arguments for index funds — if diversification is good, then more diversification must be better than less diversification.

It's possible to enhance that return by owning riskier bonds, but it will mean some down years and provide less diversification.

In this case, you would now have overlapping risk and less diversification.

Alternative investment managers typically exercise broad investment discretion and may apply similar strategies across multiple investment vehicles, resulting in less diversification.

If deaths are correlated, then there would be less diversification than expected.