Why should portfolios containing fewer stocks perform worse?

During market declines, investors with portfolios containing too few stocks can expect outsized losses.

These funds typically contain fewer stocks and are therefore less risky, but sometimes less profitable, than more aggressive growth funds.

In the 1600's, when the first Dutch settlers arrived, the bays contained rich stocks of oysters.

That compares with a return of 3.6 percent for a portfolio containing only stocks.

For less money, she said, you can have professionals manage a portfolio containing stocks that can perform much better.

A quality portfolio may therefore also contain stocks with Growth and Value attributes.

It also contains tiny stocks and those that run into trouble.

That can be expensive, especially when a portfolio contains individual stocks and bonds.

Portfolios can harbor bonds that investors would never expect - and sometimes even contain stocks.