Diversification: Why and how to do it - Fidelity Investments What is diversification? Diversification is the idea of investing in a wide, diverse range of underlying investments It means making sure that you don’t have too much money in any one investment or type of investment This can reduce your risk of losing money if one investment fails
Diversification (Finance) - Overview, Definition and Strategy Diversification refers to the practice of extending the range of products or investments to limit systematic exposure to one specific asset or product It is a risk management strategy It reduces the concentration of capital on a single company or product
Diversification: Definition, How It Works - NerdWallet Diversification is the simplest way to boost your investment returns while reducing risk By choosing not to put all of your eggs in one basket, you protect your portfolio from market volatility
Morningstar’s Guide to Diversification Morningstar’s recent 2025 Diversification Landscape report looks at portfolio diversification from multiple perspectives, including a broad range of asset classes, and the role that they can
Diversification Definition and Examples - financecharts. com Diversification is a risk management technique that mixes a variety of investments within and across asset classes It's about how you implement your asset allocation strategy by selecting specific investments within each asset class
What Is Portfolio Diversification? - Fidelity Diversification is the practice of spreading your investments around so that your exposure to any one type of asset is limited This practice is designed to help reduce the volatility of your portfolio over time