Portfolio Rebalancing: We answer frequent questions investors worry about (part 1)

In this article, we answer frequently asked question on portfolio rebalancing. Theoretically, it is easy to understand rebalancing but when it comes to practical implementation, investors have so many questions and mental blocks. The idea behind rebalancing is fairly simple and one that we have dealt before with examples multiple times:  it is a process…

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Diversification will lower investment returns!

It is important to diversify a portfolio, but it is even more important to understand that diversification will typically lower portfolio return and not enhance it! Technically, diversification is for risk reduction,or to be precise  – reduce the daily ups and downs in the portfolio value (aka volatility). However, volatility reduction almost always results in return…

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