Publikationen

How should individual investors diversify? An empirical evaluation of alternative asset allocation policies

Art der Publikation: Beitrag in Zeitschrift

How should individual investors diversify? An empirical evaluation of alternative asset allocation policies

Autor(en):
Jacobs, Heiko; Müller, Sebastian; Weber, Martin
Titel der Zeitschrift:
Journal of Financial Markets
Jahrgang (Veröffentlichung):
2014 (2014)
Heftnummer:
19
Seiten:
62-85
Schlagworte:
Portfolio theory Household finance Asset allocation International diversification Heuristics
Digital Object Identifier (DOI):
doi:10.1016/j.finmar.2013.07.004
Link zum Volltext:
https://www.sciencedirect.com/science/article/pii/S1386418113000451

Kurzfassung

Abstract

This paper evaluates numerous diversification strategies as a possible remedy against widespread costly investment mistakes of individual investors. Our results reveal that a very broad range of simple heuristic allocation schemes offers similar diversification gains as well-established or recently developed portfolio optimization approaches. This holds true for both international diversification in the stock market and diversification over different asset classes. We thus suggest easy-to-implement allocation guidelines for individual investors.