First lesson in investment that anyone teaches you is that of asset allocation and diversification. While asset allocation is one way of diversification, most investors often see them as one and the same thing. Yes, it’s true, both are adapt ways of minimizing risk and optimizing the return potential of an investment portfolio. However, in practice, they are different. While asset allocation is a way of diversifying your portfolio by investing across asset classes, diversification is a broader concept and refers to investing in different sub-segments within a single asset class. This diversification within an asset class is essential in a portfolio as markets are dynamic.
Financial Terms Like Mutual Fund, IPO and Bond Now In Sign Language For Differently-Abled
Read More
