Andrew Morris: To diversify … or not?

Quality, suitability and risk

clock • 4 min read

The idea diversification is less important than investors maintaining a low-cost, long-term exposure to the equity market has been gaining some momentum but does it stand up to scrutiny? Andrew Morris takes a closer look

Diversification is one of the foundation stones of the investment industry. Clients are constantly reminded of the importance of maintaining a diversified portfolio as exposure to different asset classes and geographies perform differently across different market conditions. A more recent movement has, however, suggested this is actually unnecessary and that simply maintaining a low-cost exposure to the equity market will deliver a better performance over the long term, despite fluctuations in performance. Yet how well does this view stand up to scrutiny? Looking solely at the headlin...

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