Summary of Mutual Funds: Why Diversify?

Most investors find diversification to be necessary to their investing success, and it’s easy to see why, considering the way the economy works. There are many ways to diversify. One can diversify according to asset class, geography, industry-type, and other variables.

Luckily for us, many mutual funds have already done the work of choosing diversified investments. That’s what their management is hired to do. It is up to us as investors to research these funds and find one or two or more that fit with our investment goals and risk tolerance to craft a personal portfolio.