TY - JOUR T1 - Volatility Management and Wealth Creation: <em>A Long-Term Perspective</em> JF - The Journal of Wealth Management SP - 27 LP - 32 DO - 10.3905/jwm.2011.14.3.027 VL - 14 IS - 3 AU - Murad J. Antia Y1 - 2011/10/31 UR - https://pm-research.com/content/14/3/27.abstract N2 - Investors may not understand the wealth-destroying implications of their investment decisions, because of the deleterious effect of volatility of returns on wealth creation. Managing the volatility of returns is integral to creating long-term wealth. The methodology presented quantifies the single-period risk-and-return tradeoff that investors need to be aware of to create long-term wealth. Practitioners can use it as a tool to educate clients about the wealth-creating benefits of diversification. Economic sector return data is used to demonstrate that underdiversified portfolios, as opposed to diversified portfolios, inhibit long-term wealth creation, because of the volatility drag associated with underdiversified portfolios.TOPICS: Wealth management, risk management, portfolio construction ER -