Fundwire

Fund Radar: Diversify, don't dummify

Let's discuss the pointlessness of portfolio overlaps

Why too much diversification is pointless

Diversifying your investment is great. Portfolio overlap? Not so much. It can be a side effect in your pursuit to diversify (spread your investments across funds). So, if you are investing in too many funds, ensure they are not investing in similar stocks. Take large-cap funds, for example. Investing in more than one active large-cap fund can be futile.

This story is not available as it is from the Mutual Fund Insight October 2024 issue

Read other available articles