"There are some people who should invest very conservatively through mutual fund diversification and the like," he said.
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.
If we could take $20 million of the industry's $300 million in subsidies, we could fund diversification and transformation of these dairies.
Thus, for investors looking beyond a 10- to 20-year time frame — including individuals saving for retirement, college endowments, foundations, pension funds, and sovereign wealth funds — global diversification still makes sense.
Many investors prefer buying a fund over picking individual stocks, as a fund offers diversification and allows the investor to save the time and effort required to select individual securities.
The only bond funds worthy of consideration are junk-bond funds, where diversification offsets credit risk.
"The funds add diversification, and that dividend yield feels comfy". * Although most domestic fund categories gained ground, most foreign stock funds struggled in the quarter.
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 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.
