BMO Investorline: BMO Global Asset Management

Diversified Portfolio Dept: "A diversified portfolio - one with a mix of investments spread across several sectors - reduces volatility without lowering expected returns," says Cesar Rainusso, vice president at BMO Investorline. " However , holding more than 30 stocks in a portfolio can actually reduce the benefits of diversification by eliminating the investment risk essential for strong returns.", according to Winnipeg Free Press. "The pundits began to say then that diversification is dead because everything went down during the crisis," says Serge Pepin, vice president, investment strategy with BMO Global Asset Management. "It's in times like these, however, when a strong fixed income component can really help investors navigate the ups and downs in the market." Special - For years, financial professionals have touted the benefits of diversifying your investment portfolio. But now, some are warning that you can actually have too much of a good thing and over-diversify your portfolio. This idea that you can over-diversify your portfolio began to emerge during the crash of 2008. (www.immigrantscanada.com). As reported in the news.