Diworsification

Diversification of a portfolio without regard, or with incorrect regard, for the necessary mathematical formulation such that it makes the portfolio riskier without any chance of a higher return.. Diworsification especially refers to investing in several mutual funds with the same or similar investment strategies. This exposes the investor to the unsystemic risks associated with the individual funds without hedging the systemic risk associated with all of them. See also: Naive diversification, Markowitz portfolio theory.

References in periodicals archive

That is known as 'diworsification' - risk may be reduced, but so are returns," he added.

Equities generate maximum returns for investors since 2003

Diversification or Diworsification? A huge fallout of the recent global financial crisis is the way diversified conglomerates have looked at their varied portfolios and decided to reorganise.

The 'One' Approach

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