Like a great car, diversification is something that almost everybody wants but seems hard to get if you do not have a lot of money to spend. Luckily for investors, there are more options now than ever before for adding diversity to a portfolio. Better still, these options are not all that expensive. (For more, see The Importance Of Diversification.)
Mutual Funds - Old, But UsefulAn actively-managed mutual fund is still an excellent way to diversify a portfolio. By allocating even just one "slot" of a portfolio to a mutual fund, an investor can draw on the accumulated benefit of potentially thousands of stocks, as well as the skill of the management team making the selections. Although some funds still charge loads, many do not and it is not hard to find funds that are likewise efficient with respect to expenses and taxes.
Please read the full column:
http://financialedge.investopedia.com/financial-edge/0910/Easy-Ways-To-Diversify-Your-Portfolio.aspx
No comments:
Post a Comment