Diversification
InvestingGlossary term
Definition
A risk management strategy that mixes different types of investments within a portfolio. The goal is to reduce exposure to any single asset or risk.
Related terms
- Asset AllocationAn investment strategy that balances risk and reward by dividing investments among different asset categories, such as stocks, bonds, and cash, based on goals and risk tolerance.
- PortfolioA collection of financial investments like stocks, bonds, mutual funds, ETFs, and other assets. Diversifying your portfolio helps manage risk.
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