Portfolio Mistakes Investors Make! Do you consider yourself as a informed investor who iscapable of anticipating and avoiding the majority of the risks that are usuallyassociated with investing?
Chances are, you are making many common errors that arecosting you a lot of money and may even harm your financial independence andsecurity. The two most costly errors investors make with their investment portfolios:
A. Asset Classes and Subclasses:
How you allocate your portfolio, rather than which investments you select or when you buy or sell them, determines the majority of your investment performance. The solution is to allocate your portfolio to many asset classes and subclasses and be careful not to over or under weight any asset class. Do not mistakenly believe that a properly diversified portfolio is a properly allocated portfolio. Properly allocate your portfolio among the different asset classes first and then diversify the investments within each asset class. Diversification is the cornerstone of asset allocation and is key to reducing risk,
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