Sectoral risk and reward: how equity funds can help

Of all the types of diversification, sectoral diversification is the hardest to achieve simply because the correct mix is the hardest to figure out. Sectoral diversification is about not having too much exposure to any one sector. However, there are two attendant problems. One, how much is too much? And secondly, how little is too little?

This article was originally published on October 30, 2020.