Portfolio Diversification
Portfolio Diversification is an investment strategy that spreads investments across various financial instruments, industries, and other categories to reduce risk.
Benefits
Portfolio diversification spreads investments across various assets, reducing risk and enhancing potential returns.
Frequently Asked Questions
What is portfolio diversification strategy?
Portfolio diversification strategy involves spreading investments across various assets to reduce risk.
How does portfolio diversification reduce risk?
Portfolio diversification reduces risk by spreading investments across different assets, reducing the impact of any single investment`s poor performance.
What is the primary purpose of portfolio diversification?
The primary purpose of portfolio diversification is to reduce risk by spreading investments across different assets.
Key Takeaway
Portfolio Diversification spreads investments across various assets, reducing risk.