Diversification is a basic risk management tool that you will want to use throughout your lifetime as you rebalance your portfolio to meet your changing needs and goals. Investors who are willing to maintain a mix of common stocks, bonds and money market securities have a greater chance of earning significantly higher returns over time than those who invest in only the most conservative investments. With careful planning, it is possible to take advantage of the diversity of funds available to create a combination of fund investments that not only fits immediate goals, but also plans for the future changes in an individual's needs, like a child's education or retirement. Tax-exempt funds can be added if your tax bracket warrants them. How you diversify and allocate your assets among investments depends largely on the time horizon in which you have to invest.
Younger investors can generally afford to be more aggressive.
Investors near retirement should shift to more conservative investments. But these are only generalities. The Gabelli Group of Funds offers a full family of mutual funds to meet all you investment needs. All rights reserved - Privacy Policy .