In a recent post, I presented a list of the ‘core asset classes’ that investors need in order to build portfolios that fully exploit available diversification opportunities. That article focused on portfolios designed for total return potential, the combined return from price appreciation and income generated by the assets in the portfolio. For investors focusing on building income-generating portfolios, the core asset classes are somewhat different. In this article, I present a proposed set of core asset classes for income-focused investors, along with examples of representative funds. (more…)
Posts Tagged ‘Total Return’
Posted in Diversification, Portfolio Investing 101, tagged AAR, Alpha, Average Annual Return, Beta, CAGR, Compound Annual Growth Rate, Compound Annual Return, correlation, diversification, FAIRX, JKI, portfolio measurement, portfolio performance, R-squared, R2, Total Return on April 7, 2011 | 1 Comment »
So what are the important measures and what do they mean?
I dove into this topic yesterday with a discussion of two important measures: Volatility and Beta. Today I’ll add six more to watch.