The Importance of Diversification in Investment
January 30, 2023
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.