What Is Diversification? – Forbes Advisor
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Diversification is an investing strategy used to manage risk. Rather than concentrate money in a single company, industry, sector or asset class, investors diversify their investments across a range of different companies, industries and asset classes.
When you divide your funds across companies large and small, at home and abroad, in both stocks and bonds, you avoid the risk of having all of your eggs in one basket.
Why Do You Need Diversification?
You need diversification to minimize investment risk. If we had perfect knowledge of the future, everyone could…
