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Asset allocation funds are the simplest approach to diversify your portfolio. These are mutual funds that have a fixed stock and bond combination. A 60/40 fund, for example, will allocate 60% of its assets to stocks and 40% to bonds or cash. As a result, a portfolio whose asset allocation mix gets more conservative as the target date approaches.
For a fund that alters its risk term profile over time, target-date funds could be a good instrument. You will have to choose the duration, while the fund managers will do the diversifying, future adjustments, and rebalancing for you.
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Investing in securities that replicate multiple indices is an excellent approach to diversify your portfolio over time. An index fund will hold all the securities in each index to closely replicate the performance of that benchmark. By incorporating specific fixed-income solutions into your portf...
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Using ETFs and mutual funds are simple ways to choose asset classes that help diversify your portfolio.
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