The firm also lost millions by moving her money into a high-risk investment portfolio without her permission, it has been alleged.
The purpose is to reduce the risk of a large portfolio loss by balancing portfolio risk among different investment types.
Therefore, any portfolio that includes more of this kind of alternative investment correspondingly increases the risk of the whole portfolio.
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The bonds promised to pay investors 10% interest, secured by oil and gas reserves, production and an investment portfolio, with no risk, the SEC quoted the documents as saying.
Just make sure you understand the characteristics and risk of any investment before you add it to your portfolio.
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Treasurys remain a top choice for investors who value short-term safety over long-term growth because they carry negligible risk of default, says Erik Weisman, a portfolio manager at fund company MFS Investment Management.
While there are other factors investors should consider in purchasing individual bonds, retirees and new bond investors interested in researching investment options that may add more income to their portfolio while avoiding the risk of bonds funds and restrictive annuities, may want to investigate corporate bonds.
Each has complementary investment styles and thus has resulted in a very nice, overall combined portfolio risk and return profile, with a very, very smooth chart.
In addition, a fiduciary is obligated to provide a diversified portfolio to minimize the risk of large losses and to select and monitor those investment alternatives to ensure they are prudent.
The Fed has taken credit risk onto its portfolio that it wasn't really set up to do, but global investment banks are really too big to simply go out of business, he adds.
In creating this sustainable portfolio, the investor faces three paramount risks: longevity risk, inflation risk, and investment risk.
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