Summit Financial Planning, one of the select DFA Advisors in Virginia.
How to Minimize Investment Risk without Sacrificing Investment Returns: Dimensional Fund Advisors
- One of the biggest challenges that face investors is building a properly diversified portfolio.
- As a company approved to use DFA funds, Summit Financial Planning can provide: investment management and asset management, so that you can own companies of all sizes, all over the world.
- Having diversified portfolios that are not too heavily invested in any one area affords the portfolio the opportunity to grow by investing in successful companies all over the world. A diversified portfolio also reduces the downside exposure of having a concentrated portfolio.
- This form of investment management differs from the more common practice of active management where analysts try to predict which stocks will perform the best at any given point in time. Our experience indicates that this practice is futile unless the analyst has inside information about the company—which is illegal. They are simply trying to predict the future based upon the same information that all market participants have access to.
- Having a greater level of diversification—owning thousands of stocks instead of a handful—helps to provide protection for your overall wealth if a few companies suffer a permanent decline in value.
- Dimensional Funds are institutional class mutual funds– they can only be purchased through approved Fee-Only advisors, and have low expense ratios and are efficiently managed.