Asset Classes & Why They Matter

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Investors are often told to diversify their portfolios using different categories of investments to achieve this objective. And while the concept of diversification can be explained in terms that are easy to understand- don’t put all of your eggs in one basket- how to structure a portfolio of multiple assets with different risk and return characteristics can be confusing. To demystify this medley of investments, take some time to familiarize yourself with the characteristics of the five most commonly utilized asset classes. Understanding how each one works in isolation can help you to create a portfolio that behaves like a symphony, and not a garage band. Continue reading

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