A multi-sector option, such as a balanced or growth fund, which contains
a mix of different asset classes.
You'll want to have
a mix of different asset classes in your portfolio to balance the potential for growth and the risk that you'll lose money.
By creating a portfolio that has
a mix of different asset classes, you are able to limit some of the risk inherent in investing.
Why does a diversified portfolio commonly have
a mix of different asset class exposure?
Not exact matches
Since then, the relative performance
of different asset classes will have made some big changes to the investment
mix.
To build a diversified portfolio, an investor generally would select a
mix of global stocks and bonds based on his or her individual goals, risk tolerance and investment timeline.2 The chart below highlights how those broad
asset classes have moved in
different directions over the past 20 years.
To hold one
asset class to a
different inflation standard than the others will substantially confuse any analysis
of a
mixed asset portfolio as discussed more in Article 8.6 (coming soon).
A diversified investment portfolio has a
mix of different investment types or «
asset classes».
The point is to hold a balanced
mix of asset classes that have both good returns on their own, and go up and down at
different times relative to the other investments held in the portfolio.
To make a very long story very short: Our Target Date Portfolio Model calculator generates an appropriate
mix of 17
asset classes, and is
different from everyone else's generic cookie - cutter approach that totally ignores you as a human being.
Furthermore, copy a range
of traders that focus on
different asset classes to diversify the
asset mix in your trading portfolio.