The Wrong Kind Of Diversification |
| June 24, 2013 | June 2013 Bond Updates |
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Asset class diversification is a good thing because it lowers the potential for a large loss. However, diversifying actively managed mutual funds within an asset class is a bad thing because it decreases the already low probability for outperforming a comparable portfolio of all index funds. If you can’t buy index funds, then pick one active fund per asset class and hope for the best. |
| View more at: http://www.forbes.com/sites/rickferri/2013/06/24/the-wrong-kind-of-diversification/ |
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