10 BEST RESOURCES ON THE WEB: DIVERSIFY YOUR PORTFOLIO TO MANAGE RISK AND MAXIMIZE RETURN
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WASHINGTON, D.C. - September 25, 2013 (www.investorideas.com newswire) Want to learn more about how to diversify your portfolio and how often to do it? A good place to turn for help is "A Diversified Portfolio – What You Need to Know and Investing Options" from the nonprofit Alliance for Investor Education (AIE) at http://www.investoreducation.org/diversification.
AIE is a consortium of 20 leading U.S. financial-related foundations, nonprofit organizations, associations and governmental agencies.
AIE President Don Blandin, who also serves as president of the Investor Protection Trust (IPT) and the Investor Protection Institute (IPI), said: "Diversification is widely recognized as key to minimizing risk and maximizing returns. The Alliance for Investor Education wants to make sure that all Americans have the best available information on how to diversify both their overall assets and how to diversify within their investment portfolio. Whether you are investing on your own or working with a qualified professional, this resource is a valuable tool to use as you start investing or review your existing asset allocation."
The new "A Diversified Portfolio – What You Need to Know and Investing Options" section of the AIE Web site features the following 10 top resources for consumers:
1. Building Your Portfolio: Using Diversification - http://bit.ly/1ao19Fw, Financial Industry Regulatory Authority. When you diversify, you divide the money you've allocated to a particular asset class, such as stocks, among various categories of investments that belong to that asset class. These smaller groups are called subclasses. Diversification, with its emphasis on variety, allows you to manage nonsystematic risk by tapping into the potential strength of different subclasses, which, like the larger asset classes, tend to do better in some periods than in others.
2. Portfolio Rebalancing: Diversification, Risk Control and Withdrawals - http://bit.ly/1bFusY3, American Association of Individual Investors. Rebalancing reduces a portfolio’s risk by maintaining the benefits of diversification, taking advantage of lower valuations and providing an alternative to panic in the midst of a bear market.
3. Handling Market Volatility - http://bit.ly/1flIMao, 360 Degrees of Financial Literacy/ American Institute of Certified Public Accountants. Diversifying your investment portfolio is one of the key ways you can handle market volatility.
4. Should You Be Using ETFs? - http://bit.ly/1dIEbe4, CFA Institute. Many investors have found that exchange-traded funds, or ETFs, are one of the more straightforward ways to add broad diversification to their portfolios.
5. 5 Keys to Investing Success - http://bit.ly/19ySS0w, Investor Protection Trust. Key #5 is diversify. Simply put, diversifying means not putting all your investment eggs in one basket. By spreading your investments around, you’re likely to increase your overall return and reduce your risk at the same time.
6. Are Your Savings Investments Over-weighted? - http://bit.ly/15sJjxI, American Savings Education Council/Employee Benefit Research Institute. Different types of investments—different funds—grow at different rates over time. Over time, those differences can add up—leaving your retirement account weighted differently than you intended between stocks and bonds.
7. Savings & Investments - http://bit.ly/1ao1Gao, National Endowment for Financial Education. Managing risks and diversifying your assets is important even in retirement. NEFE provides tips on assessing your personal situation.
8. Futures Market Basics - http://bit.ly/1ao1Kai, U.S. Commodity Futures Trading Commission. If you decide to explore futures as part of a diversification strategy, the CFTC encourages you to make this decision great care and study.
9. Mutual Funds: A Guide for Investors - http://bit.ly/1dIErK5, U.S. Securities and Exchange Commission. Mutual funds can offer the advantages of diversification and professional management. This brochure explains the basics of mutual fund investing - how mutual funds work, what factors to consider before investing, and how to avoid common pitfalls.
10. Opportunity and Risk: A Educational Guide to Trading Futures and Options on Futures - http://bit.ly/16z0Eo5, National Futures Association. This guide describes how futures and options on futures contracts are traded and the various ways investors can participate in the futures markets.
Founded in 1996, the Alliance for Investor Education Web site at http://www.InvestorEducation.org provides investors with access to a full range of information they need to make wise investment decisions. The 22-member Alliance for Investor Education is dedicated to facilitating greater understanding of investing, investments and the financial markets among current and prospective investors of all ages. We pursue initiatives for education and join with others to motivate Americans to obtain objective information and increase their knowledge and understanding of investing.
Full members of the Alliance include: American Association of Individual Investors, American Institute of Certified Public Accountants/360 Degrees of Financial Literacy, American Savings Education Council/ Employee Benefit Research Institute, CFA Institute, Certified Financial Planner Board of Standards, Inc., Financial Industry Regulatory Authority, Investment Company Institute Education Foundation, Investor Protection Trust/Investor Protection Institute, National Association of Real Estate Investment Trusts, National Endowment for Financial Education, National Futures Association, Options Industry Council, SIFMA Foundation, Securities Investor Protection Corporation, and the Society for Financial Education and Professional Development.
The U.S. Securities and Exchange Commission, U.S. Commodity Futures Trading Commission, the U.S. Federal Trade Commission's Bureau of Consumer Protection, the Board of Governors of the Federal Reserve System, and the North American Securities Administrators Association are the governmental and quasi-governmental advisors to the Alliance.
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