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Beginners' Guide to Asset Allocation, Diversification, and Rebalancing |
 | | But before you hire anyone to help you with these enormously important decisions, be sure to do a thorough check of his or her credentials and disciplinary history. |
| | Diversification is a strategy that can be neatly summed up by the timeless adage "Don't put all your eggs in one basket." The strategy involves spreading your money among various investments in the hope that if one investment loses money, the other investments will more than make up for those losses. |
| | Because achieving diversification can be so challenging, some investors may find it easier to diversify within each asset category through the ownership of mutual funds rather than through individual investments from each asset category. |
| www.sec.gov /investor/pubs/assetallocation.htm (2973 words) |
