ShmoopTube
Where Monty Python meets your 10th grade teacher.
Search Thousands of Shmoop Videos
Tech Videos 99 videos
What is covariance? Covariance is the comparison of how assets move in the markets. Positive covariance is when assets move in tandem, such as when...
What is After Hours Trading/Extended Trading? After hours trading describes any trades made after the market closes or before the market opens. Bec...
What is volatility? In the world of investing, volatility basically means riskiness. It looks at the returns for stocks or indexes, and if they are...
Finance: What is a Diversified Mutual Fund? 20 Views
Share It!
Description:
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.
- Social Studies / Finance
- Finance / Financial Responsibility
- College and Career / Personal Finance
- Life Skills / Personal Finance
- Finance / Finance Definitions
- Life Skills / Finance Definitions
- Finance / Personal Finance
- Courses / Finance Concepts
- Subjects / Finance and Economics
- Finance and Economics / Terms and Concepts
- Terms and Concepts / Index Funds
- Terms and Concepts / Managed Funds
- Terms and Concepts / Accounting
- Terms and Concepts / Banking
- Terms and Concepts / Company Management
- Terms and Concepts / Econ
- Terms and Concepts / Financial Theory
- Terms and Concepts / Insurance
- Terms and Concepts / Investing
- Terms and Concepts / IPO
- Terms and Concepts / Mutual Funds
- Terms and Concepts / Regulations
- Terms and Concepts / Stocks
- Terms and Concepts / Tax
- Terms and Concepts / Tech
- Terms and Concepts / Trading
- Terms and Concepts / Trusts and Estates
Transcript
- 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
Full Transcript
- 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
Related Videos
GED Social Studies 1.1 Civics and Government
What is bankruptcy? Deadbeats who can't pay their bills declare bankruptcy. Either they borrowed too much money, or the business fell apart. They t...
What's a dividend? At will, the board of directors can pay a dividend on common stock. Usually, that payout is some percentage less than 100 of ear...
How are risk and reward related? Take more risk, expect more reward. A lottery ticket might be worth a billion dollars, but if the odds are one in...