Financial portfolio

diversification

The difference between mixed

and single security.
The
importance of Minimizes risks

portfolio Enhance overall returns

Capital preservation

diversification
Opportunity to Capture Growth

“Don put all your eggs in one basket”.

VBTLX and VFIAX VFIAX: mutual fund designed to track the
performance of the Standard & Poor's 500
Index (S&P 500), which is widely regarded
as a benchmark for the overall U.S. stock
market.
Its objective is to provide investors with
VBTLX: invests in a diversified portfolio of
exposure to the broad U.S. equity market at
high-quality bonds, including government,
a low cost and with minimal turnover.
corporate, and mortgage-backed securities.
Often used by investors seeking long-term
Its objective is to provide investors with broad
capital appreciation and diversification
exposure to the U.S. bond market while
within their investment portfolios.
maintaining a relatively low expense ratio.
:
Mixed
Case: I have 5 milion dollars to apply.

Comparing scenarios

applications Making decisions

Comparing both scenarios, and looking

for which one would be the best in my
case.
 Risky investidor

$ 5000000
Investments

100% VBTLX
Investments
 Risky investidor

$ 5000000
Investments

100% VFIAX
Investments
 Investing $ 3 miliion dollars in VFIAX

Conclusions Potential Gain=$240,000

Investing $ 2 milion dollars in VBTLX
Potential Gain=$80,000

By comparing both models, we can Total gain: $ 320,000

notice important points
-Different flutuation taxes
-Risks
-Different pubblic destinations +Investment opportunities
By analysing those points and
applying it in a example.
investing $ 5 miliion in APPL
Potencial gain: $500,00

+ Risks
-Diversity