Timothy Small Cap Value Fund Quote

Investors will always prefer to have their portfolios divercified against different sectors. The broad sector allocation increases the possibility of making a profit or at least avoiding a loss. However, this may also reduce the expected return on Timothy Mutual Fund. Generally, it depends on diversification level and type but usually, the broader the sector allocation, the less risk can be expected from holding Timothy Mutual Fund, and the less return is expected.

Institutional investors that are interested in enforcing a sector tilt in their portfolio can use exchange-traded funds, such as Timothy Small Cap Value Mutual Fund, as a low-cost alternative to building a custom portfolio. So, using sector ETFs to diversify your portfolio can be a profitable strategy. However, no matter what sectors are desirable at a given time, no single industry should ever make up more than 20 percent of your stock portfolio.

Investors will always prefer to have the highest possible return on investment while minimizing volatility. Timothy Small market risk premium is the additional return an investor will receive from holding Timothy Small long position in a well-diversified portfolio. The market premium is part of the Capital Asset Pricing Model (CAPM), which most analysts and investors use to calculate the acceptable rate of return on investment in Timothy Small. At the center of the CAPM is the concept of risk and reward, which is usually communicated by investors using alpha and beta measures. Although Timothy Small's alpha and beta are two of the key measurements used to evaluate Timothy Small's performance over the market, the standard measures of volatility play an important role as well.