Diversification is the strategy of investing in a variety of securities in order to lower the risk involved with putting money into few investments.
 | | Diversification | | Diversification is a risk management technique that mixes a wide variety of investments within a portfolio. The rationale behind this technique contends that a portfolio constructed of different kinds of investments will, on average, yield higher returns and pose a lower risk than any individual investment found within the portfolio. | | Breaking it Down: | | Diversification strives to smooth out unsystematic risk events in a portfolio so the positive performance of... | | Read More » | | Related to "Diversification" | | | | The Importance Of Diversification | | Diversification is a technique that reduces risk by allocating investments among various financial instruments. Learn how to maximize your return without increasing substantial risk in your portfolio. | | Read More » | | | Risk Management | | Risk management occurs anytime an investor or fund manager analyzes and attempts to quantify the potential for losses in an investment. | | Read More » | | | Wide Variety | | Wide variety is a merchandising strategy in which a retailer stocks a large number of varied products to draw in customers looking for an array of goods. | | Read More » | | | Portfolio | | A portfolio is a grouping of financial assets such as stocks, bonds and cash equivalents, also their mutual, exchange-traded and closed-fund counterparts. | | Read More » | | | | | | CONNECT WITH INVESTOPEDIA | | | | | | | |
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