Portfolio Diversification and Asset Allocation

Broad diversification helps reduce the overall volatility of your investments.  You can potentially mitigate your investment risk even further by distributing your portfolio among the major asset classes. This strategy is called asset allocation.

A well-diversified, properly-allocated investment portfolio is one that includes a selection of assets from a variety of industry sectors.  However, these concepts can be expensive and require considerable investment knowledge and experience. That’s why, for the majority of investors, the most practical way to invest is through a professionally managed product.

Historical evidence is compelling: there is no better way to reduce the risk associated with market volatility than through long-term, consistent investing across a well-allocated, diverse portfolio. Your Foresters Equity representative or investment advisor representative will help evaluate your current financial strategy. Together you can explore your options and develop a diversified portfolio specific to your needs. Although portfolio diversification and asset allocation help reduce the overall volatility of your investments they do not guarantee a profit, nor do they eliminate the risk of loss of principal.