How would you measure diversification between funds

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Respond to the following client statement: a prospective client comes into your office looking for investment advice. The client feels that s/he is appropriately diversified because the portfolio currently holds six different growth mutual funds, hence a large variety of equity securities. Is this diversification? How would you measure diversification between funds? If this prospective client was 32 years old, and the funds in question were part of retirement savings, what would you advise the client in regard to having an adequately diversified mutual fund portfolio? In addition to discussing the diversification, how would you propose this portfolio be managed so that it is most tax efficient for the client? Discuss tax considerations and strategies.

Reference no: EM13985554

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