Most investors understand the important principles of investment diversification.
In doing so, investors reduce the volatility of their portfolios, resulting in more stable returns. Given this importance, the NAIC Personal Record Keeper provides several measurements of diversification. When tracking multiple assets, users of PRK can then generate a Portfolio Diversification Report. This report provides the diversification percentages by asset type and shows cost, market value, percentage of total each asset type represents in your portfolio, unrealized gain or loss, percentage gain or loss, and estimated income and yield. One of the four guiding principles of wealth building the NAIC way is the importance of diversifying common stock investments among different industries and sizes.