Overdiversification could actually hinder your investment goals

Description

Abstract: It’s possible for investors to overdiversify or spread their investment dollars too thin across asset types and industry sectors. This article explains that the more investments in a portfolio, the harder it can be to keep track of all of them. Also, it’s more likely that the portfolio will contain overlapping securities. And, with a certain higher level of diversification, investment portfolios may produce mediocre returns.