Womens Shoes Discount- Avoiding Over-Diversification

Diversification involves having a wide range of investments within a portfolio to reduce risk - basically, not having all of your trading eggs in one basket. womens pumps discount a range of investments usually yields higher returns, and also shields an investor from losing everything if one part of the market falls. But did you know that you can be over-diversified? Not only that, but some financial advisers encourage it. You may be over-diversified if you: • Own too many mutual funds within a single investment style category • Excessively use multi-manager investments womens pumps• Own excessive individual stock positions • Own privately-held, non-traded investments that are no different to the publicly traded investments you own womens shoes cheap mutual fund is a pool of funds collected from a number of investors for the purpose of investing in financial instruments, such as stocks and bonds. However, some mutual funds with different names can have similar investment strategies and investment holdings. Investment research firm Morningstar has developed categories for mutual funds, such as 'large cap value' and 'small cap growth', which group similar mutual funds. Investing in more than one fund in the same category reduces the rate of diversification achieved by holding multiple positions, while increasing your required investment due diligence and investment costs womens shoes discount. Multi-manager investment products, like mutual funds that invest in other mutual funds, can help small investors obtain instant diversification. However, these products have a lack of customisation, as well as high costs and diluted due diligence, with a financial adviser monitoring an investment manager who is monitoring other investment managers womens shoes sale.