Portfolio Diversification

A well diversified portfolio can balance weak performance in one investment with good performance in another, increasing return potential and reducing risk.


Non-Diversified Portfolio
$100,000 placed in a single investment earning 5% a year for 20 years, with no other changes to principle.

 

Diversified Portfolio
The same $100,000 split into five $20,000 investments, each earning a different rate of return, (in one case, showing a loss), for the same 20 year period.

Total return for particular period is the ending redeemable value of initial investment at the end of the period shown, assuming annual reinvestments of all income during the period.  The returns shown are hypothetical and do not represent the returns of any particular investment or investments.  Actual returns on any particular investment will depend on the particular market and risks applicable to that investment.

Shares of Mutual funds are not guaranteed, are not insured, and involve investment risks including possible loss of the principle amount invested.

Securities offered through representatives of Lincoln Financial Securities Corporation (LFSC), Member SIPC, to residents of AL, CA, FL, GA, LA, MS, NC, OH, SC, TN, TX, VA & WA.  LFSC is not affiliated with Tara Financial Group.


 

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Securities offered through Lincoln Financial Securities Corp., Member SIPC. Advisory Services offered through Tara Financial Group, Inc.
Lincoln Financial Securities Corp. and Tara Financial Group, Inc. are not affiliated. Insurance products offered through Lincoln affiliates.
Lincoln Financial Group is the marketing name for Lincoln National Corporation and its affiliates.

© 2011 Tara Financial Group