Portfolio diversification

Portfolio diversification

Investing in different asset classes and in securities of many issuers in an attempt to reduce overall investment risk and to avoid damaging a portfolio's performance by the poor performance of a single security, industry, (or country).

Portfolio Diversification

In risk management, the act or strategy of adding more investments to one's portfolio to hedge against the investments already in it. 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 a portfolio, but it depends on level and type of diversification. There are two main types of diversification. Horizontal diversification involves investing in similar type 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 investor chooses. In general, the broader the diversification, the less risk and less return. See also: Markowitz Portfolio Theory.
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The launch of the Funds and the addition of the series options provides investors with more portfolio diversification options and strengthens TDAM's existing offering of investment solutions.
This meaningful change would support continued investment in CLOs, while still ensuring adequate safeguards through standards on the quality of assets, portfolio diversification, minimum capital structure, alignment of interests, and proper reporting and disclosure and manager regulation," says Tom Quaadman, vice president of the Center for Capital Markets Competitiveness, U.
With this transaction, we are creating another compelling opportunity for the Group and our investors who are seeking strong, steady cash yields, potential for capital appreciation and effective portfolio diversification, said Mr.
is planning to build 350 to 400 megawatts (MW)of renewable energy portfolio in the next few years as part of its ongoing portfolio diversification.
The fund seeks to provide investors with an additional source of portfolio diversification and return over varying market environments.
The book's primary message is that risk can be reduced through proper portfolio diversification.
The results of this study show that international portfolio diversification is an excellent alternative that would enable BIA to reduce portfolio risk and improve returns.
Given our risk management-driven investment strategy and portfolio diversification criteria, we could not have asked for a more suitable counterparty than a market-leading company like Tesco for our first deal in Hungary.
With a focus on the Nigerian property market, this paper considered and empirically analyzed how property market nature and the perception of market players of some qualitative factors have impacted on choice of property portfolio diversification strategies.
Mahesh Kumar, BA, ACMA, ATT, CMC, MBA, DipIc's Wine Investment For Portfolio Diversification (1891267841, $45.
They also discuss bonds and other instruments for reducing volatility and creating portfolio diversification.
There are other economic considerations that support the case for global portfolio diversification.

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