Series 24: 3.8.5.3. Diversification Of Funds

Taken from our Series 24 Online Guide

3.8.5.3. Diversification of Funds

Management companies can be either diversified or non-diversified. Because most investors purchase funds to achieve diversification, judging whether a fund is properly diversified or not is important. Funds can be diversified in several ways:

• They can diversify across asset classes (stocks versus bonds) or across industries (tech versus durable goods).

• They can also diversif

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