Well-diversified portfolio

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Well-diversified portfolio

A portfolio that includes a variety of securities so that the weight of any security is small. The risk of a well-diversified portfolio closely approximates the systematic risk of the overall market, and the unsystematic risk of each security has been diversified out of the portfolio.

Well-Diversified Portfolio

A portfolio that has invested in many different types of security in order to hedge against the securities already in the portfolio. Ideally, this reduces the risk inherent in any one investment, and increases the possibility of making a profit, or at least avoiding a loss. This may also reduce the expected return on the fund, but it depends on level and type of diversification. There are two main types of diversification that a well-diversified portfolio may utilize. Horizontal diversification involves investing in similar types of investments. Examples include investing in several technology companies or in different types of bonds. Vertical diversification involves investing in very different securities; for example, one may choose to invest in securities traded in different countries or in both winter clothing and swimsuit companies. Both types of diversification may be as broad or narrow as the fund's manager chooses. In general, the broader the diversification, the less risk and less return.
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The markets were down dramatically in 2008, but well-diversified portfolios were still the best choice for most investors.
Well-diversified portfolios held up well during the many sharp market changes over the past several years.
Venture (V) = Risk and return consistent with venture capital; recommended only for maximum risk oriented and well-diversified portfolios.
Fixed income is indeed a key component of most well-diversified portfolios, yet we continue to see hesitation and misperceptions perpetuated among investors, signaling a need for better education, tools and access to fixed income securities and information," said Michael Curcio, Managing Director, E*TRADE Securities LLC.
Symphony's well-diversified portfolios are constructed with a goal of favorable risk and return trade-off relative to the corresponding benchmark.
Global capital markets continue to be volatile and investors increasingly hold well-diversified portfolios, across asset classes and geographies.
The investment management expense ratio of the participants well-diversified portfolios will range from 45 basis points for a more conservative portfolio to 55 basis points for an aggressive portfolio.
The investment management expense ratio of the participants well-diversified portfolios will range from 55 basis points for an aggressive portfolio to 45 basis points for a more conservative portfolio.
After participating in the program, 100 percent had well-diversified portfolios that would better help them reach their goals.
Over the past three years, Wilmington Trust has opened new offices in California, Florida, New York, New Jersey, and Pennsylvania, and forged affiliations that provide clients with customized, balanced, and well-diversified portfolios that include a range of investment options and styles.
Over the past three years, Wilmington Trust has opened new offices in California, Delaware, Florida, New York, New Jersey, and Pennsylvania, and forged affiliations that provide clients with customized, balanced, and well-diversified portfolios that include a range of investment options and styles.
These affiliations let Wilmington Trust provide clients with distinct asset allocation strategies using customized, balanced, and well-diversified portfolios that include a range of investment options and styles.