> For the complete documentation index, see [llms.txt](https://docs.frnx.ai/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.frnx.ai/explainer-modern-portfolio-theory-mpt/why-mpt-matters.md).

# Why MPT Matters

MPT remains a cornerstone of investment strategies due to its timeless principles:

* Encourages diversification to reduce risk.
* Provides a systematic approach to portfolio construction.
* Balances risk and reward to suit individual preferences.

By integrating MPT into its portfolio optimizer, Franklin AI ensures users benefit from a proven, science-backed method to achieve stable and consistent investment growth.