Common Misconceptions on Diversification
Some of the common myths on diversification are:
1. Diversification Will Automatically Result in Returns: As much as diversification can reduce risk, it never guarantees profits. Market conditions may still result in losses.
Some of the common myths on diversification are:
1. Diversification Will Automatically Result in Returns: As much as diversification can reduce risk, it never guarantees profits. Market conditions may still result in losses.
2. Diversification is Too Much: Too Many Funds Can Bring Over-Diversification brings forth the loss of the positive effects of diversification benefits. The performance will not be hard to track and manage investment