When you make new contributions using dollar cost averaging, should you purchase 100 % equity mutual funds, 100 % fixed income funds, or
a mixture of both asset classes with the new money?
Principally, Modern Portfolio Theory 2.0 requires a greater
mixture of asset classes with lower correlation to the broader market than that offered by stocks and bonds.
Not exact matches
Diversifying your portfolio by investing in a
mixture of varying
asset classes allows an investor to reduce their risk in the markets.
When a mutual fund portfolio includes a
mixture of stocks and bonds, you benefit from diversification across these two
asset classes.
Asset allocation refers to the overall mixture of stocks, bonds, and asset classes in your portfolio, and it's the biggest success fa
Asset allocation refers to the overall
mixture of stocks, bonds, and
asset classes in your portfolio, and it's the biggest success fa
asset classes in your portfolio, and it's the biggest success factor.
Choosing a
mixture of index funds representing various
asset classes is way different than deciding to become a day trader.
Very simply, «
asset allocation» refers to the overall
mixture of stocks, bonds, and other
asset classes in your portfolio, and how much
of your total capital is invested in each one.