Using sector funds to create a diversified mutual fund portfolio by allocating assets across a group of sector funds, investors can effectively create a diversified mutual fund portfolio using sector funds.
lifecycle fund A highly diversified mutual fund intended to remain appropriate for investors... lifetime cap A limit on the amount that the payments of an adjustable rate mortgage can increase...
" A lifecycle fund is a diversified mutual fund that automatically shifts towards a more conservative mix of investments as it approaches a particular year in the future, known as its "target date.
One may invest in other investment options (Equity Diversified Mutual Funds, Balanced Mutual Funds, or Gold for instance) with their attendant return characteristics.
's stock, a little money in a diversified mutual fund that owns several stocks, a little money in bonds and a little in real estate, the chances of your portfolio plunging suddenly would be greatly reduced.
IBD Mutual Fund Index
An index of 24 diversified mutual funds. more...
Index Percentage
The weight an individual stock holds in an index, expressed as a percentage.
Conversely, though, buying individual stocks can be a lot more rewarding. You can earn far greater returns from individual stocks than you'll ever find from a diversified mutual fund -- if you pick the right stocks.
But the investor owns 15 shares and paid just $200 for an average price per share of just $13.33. TIP: A good approach for smaller investors just getting started, and also for IRAs. It works particularly well with diversified mutual funds.
 See also: Mutual Fund, Investment, Stock, Investing, Portfolio
  
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