7 Types of Investments Clients Should Avoid: Advisors' Advice

What you keep out of a portfolio can be just as important as what you include, Morningstar portfolio strategist Amy Arnott recently wrote. Arnott outlined seven investments she decided to exclude from her personal portfolio, including some popular assets, while not ruling out the possibility that she might reach a different conclusion in the future. As her list indicates, what may be trendy or tried and true for some investors will be hands off for others. Arnott's portfolio, for example, is off-limits to: actively managed funds (except for small holdover positions), alternative investments, Series I savings bonds, real estate investment trusts, high-yield bonds, sector funds and gold. We asked advisors whether there are any investments that they advise their clients to avoid, and if so, why. Check out the gallery for seven advisors' responses. Some replies have been edited.