Suppose you win 100 million. What do you actually do with it? Banks only guarantee 250,000. Do you have to invest it? Is there anywhere you can just let it sit and draw interest?

  • @SugarSnack@lemm.ee
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    81 year ago

    This is absolutely the way to go, but be aware that it can lead to concentration/sectoral risk when managers aren’t aware of positions in the other portfolios. For example, Goldman could invest heavily in tech or pharma or whatever, not realising that JPM also have a big investment in that area.

    • JackbyDev
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      11 year ago

      Investors shouldn’t be picking winners. That’s already too much risk and too many fees. Total market index funds and total bond indexes are what you should be investing in.