Four Essential Elements Of Successful Investment Portfolios

In my last article, I wrote about distinguishing the portfolio you want (i.e., the “magic portfolio” with low fees, always beats the market and never loses money) from the portfolio you need. While there are many approaches to investing, academic research and industry data indicate that most successful approaches have the same consistent four elements: effective diversification, active allocations and cost and tax efficiencies. Let’s look at each of these elements in more detail.