Diversified portfolio for better returns

Updated: Oct 27, 2021

Diversification is a technique that reduces risk by allocating investments across various financial instruments, industries, and other categories. It aims to maximize returns by investing in different areas that would each react differently to the same event.

Most investment professionals agree that, although it does not guarantee against loss, diversification is the most important component of reaching long-range financial goals while minimizing risk.


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References

Investopedia.com, https://www.investopedia.com/investing/importance-diversification