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Do you agree? You need a diversified portfolio for secure investment . Money market funds for short term needs. Income and balanced funds for medium term Pure equity ( with representation of large, mid and small caps ) for the long term.
Yes, but just to keep a low level of profit and keep the capital
Yes. Variety brings security.
yes you must secre lnvestment
- successful equities capability can be reached by a well stractured portfolio based on international distribution, and diversification. So a balanced based portfolio selection between safe and risky assets can provide with equilibriume, eliminate risk and arise prospects on successful marginal return. On the other hand, if returns are correlated, no amount of diversification can effect risk.
- I agree with the above mentioned selections between long-term and time-rolling perspectives. However, bare in mind that short-shelling and over-weighting constrains reduse but not completely eliminate the diversification benefit.
- Markowitz model does not necessarily realize varience efficiency but demonstrate s risk reduction.
