Tuesday, October 28, 2008

Why is diversification in the best interest of an investor?

Diversification is in the best interest of any investor because in a down market it can mitigate risk, reduce the volatility of a portfolio, and prevent overexposure to falling asset classes. In an up market it diversification can enhance returns above indexes and benchmarks, take advantage of multiple asset classes, and potentially increase the overall total return of a portfolio.

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