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"There are some people who should invest very conservatively through mutual fund diversification and the like," he said.
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Philip Clausius, chief executive of First Ship Lease Trust Management, told Reuters, "The way forward is funding diversification as the old days of going to your house bank and getting the funding that suits you are over".
A wine fund has the advantages of other funds: diversification that minimizes the harm caused by any one bad decision; economies of scale that limit the cost of storage, transportation and insurance; and, perhaps most important, professional expertise in choosing holdings and buying and selling them efficiently and at good prices.
Critical NGOs will require support with developing and implementing funding diversification strategies and sustainability plans to ensure long-term viability and continued access to essential services for key populations.
Mr. Kolluri suggested that average investors would be "better to stick with a fund" for diversification, diluting the credit risk of any individual company.
The only bond funds worthy of consideration are junk-bond funds, where diversification offsets credit risk.
The decades-old firm instead insists it will stick to its traditional investing, eschewing the scores of industry-specific funds and diversification that now-public rivals have undertaken in part to please Wall Street.
In addition, the Internal Revenue Code sets requirements regarding these funds' portfolio diversification and its distributions.
The classic arguments for investing in funds are diversification, which limits risk; and professional management, which hopefully increases returns.
The main advantage of bond funds is diversification, which is much less important in the case of government bonds or high-grade corporate bonds with no or little risk of default.
Mutual funds offer instant diversification because each fund, or basket, owns multiple stocks, bonds and so on.
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