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Finance: What is a Diversified Mutual Fund? 20 Views

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What is Diversified Mutual Fund? Diversified mutual fund allow individual investors to obtain the benefits of risk mitigation through diversification albeit on a proportionate scale to investment size. A diversified fund will often have both income and growth portfolio aspects, and will be measured against certain indexes as benchmarks (which the fund may also replicate) for outperformance target metrics.

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00:00
finance a la shmoop what is a diversified mutual fund? all right people
00:08
listen up it's lots of investments stocks bonds exposure to risk and reward [Risk and reward punch man in face]
00:14
everywhere energy, telecom, insurance, real estate, banking, chemicals, tech, retail not
00:22
enough diversity yet well those are just sectors or industries and there's a
00:26
whole bunch of them what about geography geographic diversity the US, Russia, China

00:31
Europe someday maybe Mars Elon what do you think well maybe exposures to [Elon Musk floating in space]
00:36
different currencies or commodities cycles as the diversity you seek hmm
00:41
well that's diversity Benetton eat your heart out so the bigger question is why
00:46
would you want such diversity? well the idea is that you mitigate risk by being
00:52
diverse the don't put all your eggs in one basket thing if one investment goes [Value of investment graph appears]
00:57
bust well at least you have plans B C and D to fall back on and if this is
01:01
grabbing you check out our videos on efficient markets theory for more on the
01:05
subject or maybe diversify your knowledge and watch all of our finance
01:10
videos food for thought and you know please click on the ads that we got to [Man holding begging sign]
01:14
eat around here
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