Series 66: Diversification Of Funds

Diversification of Funds

Management companies can be either diversified or non-diversified. Because most investors purchase funds to achieve diversification, judging whether a fund is properly diversified or not is important. Funds can be diversified in several ways. They can diversify across asset classes (stocks versus bonds) or across industries (tech versus durable goods). They can also diversify by holding the securities of many differen