Diversification In Pictures
10/14/2010 0 comments
Nanette Byrnes at portfolioist.com posted the following elegant blog to illustrate the concept of diversification:
"If a picture is worth a thousand words, when it comes to the payoff of diversification, a chart or two may prove even more valuable.
The principles over at MyPlanIQ, a firm specializing in sorting through corporate 401k plans and offering suitable portfolios from the funds on offer, have put several together. They show what portfolio theory teaches: that adding more asset classes to a portfolio improves its performance over time...."
She had the following chart to compare MyPlanIQ's 3 Core Asset (3 SIB), 4 Core Asset (4 SIB), 5 Core Asset (5 SIB) and 6 Core Asset (6 SIB) returns:
Read more in her original post.
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