Diversification is the technique of spreading your investments across different types of assets, such as stocks, bonds, or real estate, so that the performance of any one investment will not have a disproportionate impact on your overall portfolio. Diversification is a crucial principle of investing that can help reduce risk in your portfolio. But the thing to recognize is that reduced risk also reduces your return potential.
Investing may seem like an intimidating and complicated activity for most people. Many think investing is for the finance geeks, risk-takers, or the wealthy. They even assume saving is investing. Continue reading about the basics of Investing & the various factors to consider while starting an investment journey.