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Diversification and Compounding Effect
By Akhiat  •  May 29, 2008
By: Adrian Khiat After writing about Anne Scheiber last week, it inspired me to write about Diversification and Compounding today. Diversification is very powerful strategy because it reduces the various types of investment risks that are present in any portfolio. By allocating your assets among different asset classes and sectors, gains in one part of the fund can lessen or even eliminate the impact of losses in another fund. With occasional rebalancing, the returns will be better. An illustration to show you the power of compounding and diversifcation Scenerio A Mr Tan invested $100,000 into a fund that returns 5% over 20 years Eventual returns = $265,330 Read more...
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By Akhiat
Adrian entered the Financial Advisory Industry in Feb'03 after years in the Shipping and Logistics Arena. He joined the industry with a strong belief that the public need better advice in their financial plan. "It is a big challenge to me till today because I am not a natural Sales Person. However I want to remove public's perception that Financial Adviser are all Salespeople. It is a professional job that deserve more respect. I want to impart my methodology, skills and knowledge to help you improve your Financial Health and to share health tips to improve your Physical Health."
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