Oftentimes clients tell me,
“Bob, I understand it’s good to diversify but I’m very busy and I really don’t have
the time to consider all the nine (9) sectors you’ve described to me. Isn’t there one investment that I can use that
will do all the work for me?” Yes there
is. I will described this investment
today. However, keep in mind one should
always strive for an investment program that diversifies.
If you want a single
investment that covers all nine investment grids, consider an investment mutual
fund that is aptly called an “All Cap Fund.”
In this investment, theoretically, all nine asset classes are included. So you’d have the nine following classes
represented in your portfolio.
Large Cap Growth, Blend
and Value
Mid Cap Growth, Blend and
Value
And lastly, Small Cap
Growth, Blend and Value
It is not a true
diversification as a portfolio manager often is restricted by the number of
holdings he or she can maintain. Yet it
is a good one stop all cap fund that may serve as a starting point. There are
many good fund families that offer such an investment approach. Be sure to read the current prospectus to
understand the fund’s risks, objectives, fees and taxes.