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diversification investments Unit trusts and diversification (1 viewing) (1) Guests
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TOPIC: diversification investments Unit trusts and diversification
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Tim Josling (Visitor)
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diversification investments Unit trusts and diversification  
According to an article I recently read in the Financial Anaysts Journal (March/April 1997 page 37 How many mutual funds Constitute a Diversified Portfolio ) owning one unit trust gives you roughly as much diversification as owning 3-4 different shares. You need at least 4 and probably 8 unit trusts to achieve sufficient diversification. This is consistent with what you see in the performance tables in the Fin Review etc - they are all over the place. Also be aware when reading the performance tables that you are only seeing the survivers - the real duds are quietly killed off and forgotten. Tim Josling
 
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