![]() Defensive sectors include health care and consumer staples. Although, some funds expand that definition up to 500 million. ![]() This generally covers those firms with market caps below 300 million. These sectors are called “defensive” because of this resilience during hard times. Micro-Cap Equity Funds and ETFs are mutual funds that hone in on the smallest stocks in terms of market capitalization. Defensive sectors: Some sectors fare better than others during a weak economy.On the other hand, bonds are lower-risk, but they offer less promise of long-term gain. Stocks are higher-risk, but they hold a higher potential for long-term gain. In short, keep in mind the risk and reward degree of investments. At the same time, you can still maintain exposure for long-term gain. ![]() Diversification and balance of assets: Allocating a portfolio to multiple asset classes, including stocks, bonds, and cash, can help you protect yourself from the extremes of a bear market.This is important because keeping costs low is a central aspect of producing higher returns, especially in the long run. Low expenses: When choosing the best funds to buy, no matter how long the holding period, it's smart to choose among the best low-cost, “no-load” funds, sold without a commission or sales charge.
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