The costs incurred by too
much investment diversification are transaction fees and over diversification.
Not exact matches
The
investment minimums for most bond funds are low enough that you can get significantly more
diversification for
much less money than if you purchased individual bonds.
As you make more money,
diversification becomes more important, since you don't want too
much of your money in one type of
investment.
Diversification is important and by owning too
much of one
investment, you are adding unneeded risk to your portfolio.
Caps on the number of charters in a state drag down performance as
much as lax oversight, because they cramp the
diversification of the market and discourage
investment.
Having complete control over their
investments, allows investors to find the «sweet spot» between too little and too
much diversification.
If I were to invest, I would use a
much higher number of notes (700 - 800) for a higher degree of
diversification, and I would limit
investment to only maturities of 36 months, no 60 - month term notes.
By taking into account your risk tolerance,
diversification and asset allocation,
investment plans are typically designed to help you decide how
much to invest in stocks, bonds, cash and real estate in order to maximize your returns.
If you're interested in truly diversifying your portfolio and pursuing stock market
diversification in earnest, then look into other asset classes, particularly those that don't correlate as
much to the standard
investments you already own.
If the two of you are going to pay 1.25 % each year for portfolio management, I'd
much rather see your adviser providing more active management that focuses on unique asset classes, proper
diversification and a consistent
investment strategy.
Few spend as
much time worrying about their portfolio
diversification and asset allocation as they do looking for winning
investments.
Stakes in
investment companies / funds can afford to be that
much larger — say, up to 10 %, depending on the level of
diversification.
You will get
much better
diversification mixing stocks with
investment grade bonds.
Deciding how
much of various types of
investments to include in your
investment portfolio is broadly termed «
diversification» or «asset allocation».
Investments should (hopefully) be a positive sum game, so the average investor makes money, so assuming the «average investor» ends the year with 105 % of what he started with
diversification will ensure you get closer to 105 %, not
much more or less.
This limited selection leads to lack of
diversification, which results in higher risk,
much higher volatility, poor
investment performance, low yields, selling shares when they're down, lower spendable retirement paychecks, capital depletion, and a disappointing retirement.
As you make more money,
diversification becomes more important, since you don't want too
much of your money in one type of
investment.
Investment in residential real estate gives us a
much needed
diversification from the stock market and is also based upon fundamental factors like employment, population growth and growth in real income.