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GLOSSARY: Enter search term:
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Glossary Term: DIVERSIFICATION

Definition(s) for DIVERSIFICATION:


1. ) refers to the allocation of assets within an investment portfolio among various types of investments.

2. ) Spreading investments among different types of securities and various companies in different fields.

3. ) The distribution of investments among several companies to lessen the risk of loss.

4. ) The process of investing across a range of investments in order to diversify (or minimise risk). As a result, if one investment performs poorly, better performance from the rest of the portfolio helps to reduce the risk of loss.

5. ) Spreading investment over multiple products or securities. Diversification usually reduces portfolio risk because the returns on various asset classes are not perfectly correlated.

6. ) The practice of spreading investment across a range of companies, business types and locations to reduce risk. Diversification is a core principle in successful investing.


See Also:
COUNTRY DIVERSIFICATION, CURRENCY DIVERSIFICATION, EFFICIENT DIVERSIFICATION, INTERNATIONAL DIVERSIFICATION, LIQUIDITY DIVERSIFICATION, PORTFOLIO DIVERSIFICATION, SECTOR DIVERSIFICATION


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