Diversification In Your Portfolio: Why It's Important
Explaining the “why” behind not putting all your eggs in one basket
The potential to net more money, while taking less risk
How diversification can sometimes feel disappointing, even when it’s working
Disclosures:
· Advisory services are offered through Aegis Wealth Management, Inc. The firm is registered as an investment advisor with the SEC and only conducts business in states where it is properly registered or is excluded from registration requirements. Registration is not an endorsement of the firm by securities regulators and does not mean the advisor has achieved a specific level of skill or ability. The charts and returns illustrated in this article were compiled by BlackRock Investments and do not represent the performance of Aegis, Oakway Financial, or any of their advisory clients. They do not reflect the impact that advisory fees and other expenses will have on the returns.
· All investment and insurance strategies have the potential for profit or loss. Different types of investments involve higher and lower levels of risk. There is no guarantee that a specific investment or strategy will be suitable or profitable for an investor’s portfolio. Historical performance returns for investment indexes and/or categories usually do not deduct transaction and/or custodial charges or an advisory fee, which would decrease historical performance results. There are no assurances that a portfolio will match or exceed any particular benchmark. Asset allocation and diversification will not necessarily improve an investor’s returns and cannot eliminate the risk of investment losses.
· Backtesting utilizes a hypothetical reconstruction of how a specific strategy might have performed during a specific time period. Results do not represent actual trading, but were achieved by applying a strategy retroactively with the benefit of hindsight. Backtested strategies have inherent limitations, especially the fact that they do not represent actual trading and may not show the impact that material economic conditions might have had on the advisor’s decision-making.