In addition to the core portfolio, we can buy some industry funds, emerging market funds and funds investing in a certain kind of stocks or industries, so as to realize investment diversification and increase the income of the whole fund portfolio. Small cap funds are suitable for non core portfolio because they are more volatile than large cap funds. If the core portfolio is large cap fund, the non core portfolio should be small cap fund or industry fund. Non core funds have high risk, so they need to be carefully controlled to avoid too much impact on the whole fund portfolio.
Fund portfolio investment can be diversified
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