What is Diversification?

Diversification is an investment portfolio strategy designed to reduce risk by combining a variety of investments, such as stocks, bonds, commodities and real estate, which are unlikely to move in the same direction or at the same rate. Diversification reduces both the upside and downside potential and allows for more consistent performance under a wide range of economic conditions.


See Also:

Diversifying Your Assets = Feeling More Secure 

How do you invest your money?

Diversify with Local Investment Opportunities

Diversify Your Portfolio with Prosper

Invest in Yourself