Investing in negatively correlated securities to avoid excessive exposure to market risk. In general, a portfolio is considered diversified with 15-20 stocks; however, in addition to the number of assets, it is important to include stocks or funds that are not highly correlated.
Diversified investment company Divestiture
Spreading the risk; Mutual funds spread investments among a number of different securities to reduce the risk inherent in investing.
The reduction of risk achieved by buying a portfolio of securities whose returns are not correlated.... more on: Diversification
The inclusion of a number of different investment vehicles in a portfolio, in order to increase returns or lessen risk exposure; may be random. The greater the diversification, all else equal, the lower the investor's risk.
The spreading of investment funds among classes of securities and localities in order to distribute and control risk. Investors can increase their potential return for a given level of risk by combining several investments within or across asset classes.
The spreading of the assets of a portfolio among a number of alternative investments in order to reduce risk.
Spreading an investment among a variety of securities to reduce risk.
The process of reducing specific risk in a portfolio by holding a number of weakly correlated assets. Although the portfolio will retain the risk of holding assets of that class, its exposure to the particular riskiness of this or that asset will be reduced. This is not simply because the percentage exposure to a particular asset is reduced (not all eggs in one basket), but because careful asset selection will result in a portfolio of assets that perform differently in different market conditions and therefore tend to produce a more stable return than a single asset of that type. A counter-intuitive consequence is that adding a highly risky asset to a portfolio may actually reduce its overall risk.
Essentially means spreading your investment risk across different funds or asset mixes. If the value of one or several should fall, the relative strength of the other funds will lessen the overall impact on your portfolio. It's the investment equivalent of not putting all your eggs in one basket.
In insurance, the spreading of the risk, accomplished by several different techniques, such as geographically, by type of risk, by type of coverage, or by insuring more risks that are separate exposures. Also applies to spreading investment risks, such as the diversification of cash value among different investment accounts in a variable or variable universal life policy.).
Spreading investment and contingent risks among different companies in different fields of endeavor.
portfolio strategy designed to reduce exposure to risk by combining a variety of investments, such as stocks, bonds, and real estate, which are unlikely to all move in the same direction.
Technique to mitigate portfolio risk by investing in different securities and thus reduce the risk of holding any single investment that could affect portfolio performance.
An investment strategy that involves establishing a portfolio of different investments by mixing industries and types of assets to spread their risk. In this way a particular event (introduction of automobiles, for example) will have less impact on the investor's total portfolio than if you owned a single investment in a buggy whip company. In other words, don't put all your eggs in one basket.
A method of portfolio asset allocation, which spreads investments over a broad range of securities and/or asset classes. The goal of diversification is to reduce the portfolio’s risk exposure to a specific security, sector, or asset class, thus balancing the portfolio's risk and return potential.
Spreading investments over a variety of investment categories in order to reduce risk. You may also invest in different countries spread your risk.
The practice of including in a portfolio different types of assets ( e.g., securities that differ by type or location of issuer, maturity, or credit quality) in an effort to minimize risks or improve overall portfolio performance. Diversifying a securities portfolio by type or location of issuer, for example, might protect the portfolio against adverse conditions in a particular industry or region of the country, while diversifying by credit quality might permit the acquisition of lower-rated, higher-yielding securities while protecting most of the portfolio's capital in higher quality securities.
Holding two or more assets to maximize return and minimize risk.
Diversification - Trade in the several markets (using several tools) in order to reduce the price risks.
The strategy of investing in several different types of assets, (and, in some cases, investing in several different regions of the world) in order to balance the portfolio and protect against large losses and high volatility.
to spread investment over several enterprises
A portfolio strategy designed to spread risk by allocating assets among a variety of investments (such as Stocks, Bonds, and Cash Equivalents).
Spreading investments over a number of individual assets, classes of assets, countries or investment managers in order to reduce total investment risk.
Investing across several different types of asset categories (stocks, bond and money market securities) and, within those classifications, investing in different types of securities and industries. The spreading of risk over various types of investments makes it less likely that a setback in a single sector will have an undue influence on an entire portfolio.
Diversification is the investment strategy of putting your money into a number of different investments in order to reduce overall Investment Risk. The goal is that losses in one or more investments may be offset by gains in others.
Spreading your risk among a variety of different types of investments (asset classes) to reduce the overall volatility of your portfolio. Because different types of assets tend not to move in tandem, a well-diversified portfolio should be able to perform better in a range of market conditions than a portfolio that has placed all its bets on just one asset class.
Concept of reducing the risk of a portfolio by investing in different asset classes and with various fund managers.
To place checkers in order to increase the number of good rolls on a subsequent turn, usually accompanied by increased risk of getting hit.
The practice of dividing financial resources among a variety of investments with different risks, reward, maturity etc. in order to minimise the overall risk. Français: Diversification Español: Diversificación
The process of helping reduce risk by investing in several different types of individual funds or securities.
A way to reduce investment risk through several categories of investment, such as stocks, bonds, mutual funds, money markets, real estate, precious metals, and other categories.
The process of holding a range of investments in order to diversify risk, so that if one investment performs badly, this is compensated by better returns from the remainder of the portfolio.
Investment in a number of different security issues to insulate a portfolio from a painful drop in one market area. This risk-reducing strategy is akin to not "keeping all your eggs in one basket."
The practice of distributing your assets among different types of financial instruments in accordance with your planning strategy. For instance, if you are near retirement age, your allocation of savings might focus more on "conservative" vehicles such as bonds, certificates of deposit, fixed-rate annuities and cash value life insurance, since these are less vulnerable to short-term risk. For more on this topic, see our seminar entitled Smart Investing: Step By Step.
A strategic approach to reducing portfolio risk. Diversifying by asset class, style and sector limits the potential impact of volatility on the portfolio because no one asset class, style or sector outperforms every year.
The concept of spreading your money among different investment options to reduce your overall risk. The idea is that if one investment option performs poorly, it only affects a small part of your total investments
Dividing investment funds among a variety of securities offering independent returns.
In a variable annuity, a method that helps an annuitant reduce or avoid risk by distributing funds over multiple asset classes, i.e., over stocks, bonds, or different security types within a given asset class; for example, an annuitant could diversify by investing in stocks within different industries.
The strategy of investing in a wide range of companies or industries to reduce the risk if an individual company or sector suffers losses.
when an investor, to reduce the risk of selection, spreads investment dollars over many securities.
Including of a number of different investment types in a portfolio to increase returns or reduce risk.
The construction of a portfolio to reduce risk by balancing defensively its funds among securities of different industries, different classes, and different company sizes.
A basic risk management tool in which an investor maintains a mix of common stocks, bonds money markets and other investments to reduce potential risk.
The act of allocating money into multiple investments in order to offset the impact of dramatic changes in any single investment.
moving into new markets or activities so as to reduce or spread risks, often by buying other companies in different fields.
The spreading or lowering of risk by investing in many different types of investments.
spreading an investment over a range of asset classes, sectors and regions with the aim of reducing risk. As the old saying goes "don't put all your eggs in one basket".
Spreading investment assets among stock, bond, and cash funds.
producing more than one product in order to enhance profits or reduce risk of loss
Spreading funds among different investments to minimize the risk of owning any single investment and having all your financial eggs in one basket.
The practice of spreading one's investments over several industries and company sizes in order to minimize risk while maintaining favorable reward potential.
The practice of putting money into a number of different investments. Investors diversify so they can reduce the risk of their investments losing money. If you put your money into five shares and five bonds, for example, you're practising diversification. In effect, you're hoping that if one investment is not doing well, it will be offset by most of the other investments, which presumably are making money. Buying a *collective investment scheme is one of the best ways to diversify. Collective investment schemes, because they are a collection of shares, bonds or other securities, are typically diversified investments.
The principle that wise investors should spread their risk among many different types of investment. A properly balanced portfolio will contain elements of share, deposit-based and property investments. Fund performance and objective achievement are not guaranteed
The process of choosing securities having dissimilar risk-return characteristics in order to create a portfolio that will provide an acceptable level of return and in acceptable exposure to risk.
Spreading investment funds out over various investment options (stocks, bonds, mutual funds and money market accounts, for example) in an effort to reduce risk. View LEI Lesson(s) that address this term
the act of introducing variety (especially in investments or in the variety of goods and services offered); "my broker recommended a greater diversification of my investments"; "he limited his losses by diversification of his product line"
Diversification is the strategy of minimizing unsystematic risk by dividing investment into a variety of securities. Diversification and risk are related in that the more you diversify the less risk you will have. An efficiently diversified portfolio will have the greatest return for a certain amount of risk.
Holding several investments that have different risks. The concept of "Don't put all your eggs in one basket." The chance that a single stock or other investment will lose money is offset by the chances of your other stocks and investments making money.
A portfolio strategy focused on reducing exposure to risk by combining a variety of investments which are unlikely to all move in the same direction. Diversification reduces both the upside and downside potential and allows for more consistent performance under a wide range of economic conditions. A diversified portfolio may contain stocks, bonds and real estate.
the spreading of investments over a range of asset classes, sectors and regions to reduce risk.
The investment strategy of spreading dollars among different markets, sectors, industries and securities. The goal is to protect the overall value of your investments in case a single security or sector takes a downturn.
Spreading investment and, therefore, risk among different companies in different fields.
The process of accumulating securities in different investments, types of industries, risk categories, and companies in order to reduce the potential harm of loss from any one investment.
The spreading of risk among many entities. Fund managers may buy several stocks or bonds issued by several companies in a wide range of industries to spread their risk. The objective is to be diversified enough so that no one investment has too large an impact upon the entire portfolio. Mutual fund investors may also buy several, different types of funds to diversify their own portfolio.
Spreading investments across different asset classes and fund managers to reduce the risk of investing in one or more poorly performing investments at the same time.
Diversification is an investment strategy for spreading your principal among different markets, sectors, industries, and securities. The goal is to protect the value of your overall portfolio in case a single security or market sector takes a serious downturn and drops in price.
The policy of all mutual funds to spread investments among a number of different securities markets to reduce the risks inherent in investing.
The mutual fund policy of spreading investments among a number of different securities to reduce risks inherent in investing.
Spreading of investments among different security types and across different industries to reduce the overall risk in a portfolio.
Distributing assets among a variety of securities. By diversifying, you avoid having all of your eggs in one basket, or having all of your money in one type of investment that may not perform well at a particular time.
A strategy to spread investment risk among different asset classes (stocks and bonds), different types of assets (public and private equity), among securities (different stocks), among economic sectors (financial services and natural resources), and among different countries.
Attempt to reduce business risk by entering other businesses which are in some way unrelated.
Minimisation of non-systematic portfolio risk by investing assets in several uncorrelated securities and investment categories.
Limiting investment risk by purchasing different types of securities from different companies representing different sectors of the economy.
The practice of investing in several different asset classes as well as in many different investments within each asset class. This process helps reduce the risk of loss should any single investment or asset class perform poorly over the short-term, and may increase your long-term returns.
Spreading funds between various sectors of investment markets and/or fund managers to minimise risk. (see aslo Diversify or spread your investments)
The practice of spreading investments over a range of eg asset classes, managers, geographic locations etc to reduce risk.
Forex market trading in the several markets (several tools) for reduction of price risks.
The strategy of buying securities in different investment and industry types, risk levels, and companies in order to reduce the loss from any one company, investment or industry.
Spreading your savings among different regions (such as the U.S. and Asia) and asset classes (such as cash, stocks and bonds) to protect your portfolio from any sudden changes in any one area. The financial equivalent of "not putting all of your eggs in one basket." For more information on the importance of diversification, please click here.
An investment technique designed to reduce exposure to wide fluctuations in value by holding a variety of investments. A balanced fund will hold different types of investment classes such as stocks, bonds, cash equivalents and real estate. A fund that invests in a specific asset class such as a stock fund will hold a variety of stock of different types of companies.
A method to allocate the investment risks by investing in various asset classes.
A benefit of mutual fund ownership. Investments are spread among a number of different securities to reduce the risks inherent in investing. The level of diversification may vary between fund investment objectives.
Generally refers to the variety of investments in a fund's portfolio. Risk-averse fund managers seek to combine investments that are unlikely to all move in the same direction at the same time.
The concept of spreading the money among a number of different investments or investment programs in order to reduce risk. It's the idea that one shouldn't put all of your eggs in one basket. Advice: Diversification is a good way to reduce your risk and exposure to the market. Every good portfolio should be diversified. The level of diversification is up to you, though.
The inclusion of a number of different investment vehicles in a portfolio in order to increase returns or be exposed to less risk.
Spreading investment risk by buying different issues in different companies in different industries and/or in different countries.
Diversification is a method that consists of allocating the investment risks by investing in various asset classes. Diversification may also be geographic or carried out on the basis of the sector of activity, the management style or the manager.
The investment technique of spreading risk among securities and asset classes.
The allocation of investment funds by an investor into different market industries or types of securities, in an effort to minimize risk.
Spreading investments among different companies in different fields. Another type of diversification is offered by the securities of many individual companies because of the wide range of their activities.
spreading investments across several alternatives instead of concentrating them on a single, or few, investments.
Diversification in a portfolio marks the degree to which various funds move in similar or disparate directions from each other through market cycles. Diversification lowers risk and generates safer returns. Diversification is not necessarily created by owning several funds in a portfolio— to determine the mathematical level of diversification, you need to assess your correlation coefficient.
A strategy designed to reduce exposure to risk by combining a variety of asset classes which are unlikely to move in the same direction at the same time. The goal of diversification is to reduce the risk in a portfolio.
It is the investment strategy of not putting all one’s eggs in one basket. By diversifying a portfolio across different industries, overall risk of the portfolio is reduced.
Distribution or spreading of investments across a wide range of different individual securities, sectors, countries and currencies, the aim being to reduce risks. As well as upside potential, each individual security has risks that are inherent in the security itself (security-specific risks) and risks that stem from the development of the individual securities markets (market risk). If investments are made in foreign currencies, there is also a currency risk. The security-specific risks can be clearly reduced – and in some cases even completely eliminated – by spreading the investments over a number of individual securities. This effect is called diversification (or risk spreading).
Spreading money among several investment options or asset classes for the purpose of reducing risk.
The investment in a number of securities. This results in spreading and thereby reducing the risks inherent in investing.
An investment strategy to reduce risk by combining different investments.
An investment strategy designed to reduce risk by combining a variety of investments. Not putting all your eggs in one basket.
Spreading investment and risks among different companies or classes of investments.
Spreading the number of investments you own across multiple investment types to reduce the amount of risk in your overall portfolio.
The process of selecting different investments to reduce investment risk.
The act of spreading your money across a wide range of investments and a variety of markets.
Reduces the risk of investments by combining assets or asset types that have different behaviors in a given market environment in a portfolio. For example, by combining cash and stock in a portfolio, the risk of the portfolio will be lower than if it only contained stock, because the value of cash does not fluctuate while the value of stocks do.
The process of buying securities in different sectors, industries, risk levels, and companies in order to reduce the loss from one particular company- "Don't put all your eggs in one basket."
The allocation of investments among different companies, industries, and/or types of securities to reduce risk.
To spread an investment portfolio across a number of different asset classes in order to minimise risk and the impact of volatility in any one class.
Dividing investment funds among a variety of securities with different risk and reward "profiles" or "expectations."
The policy of spreading investments among a range of different securities to reduce the risks inherent in investing.
Dividing available funds among a variety of securities and institutions so as to minimize market risk.
Spreading investments among many different securities or sectors to help reduce the risk of market downturn.
Risk reduction by spreading investments across a range of asset classes.
The spreading of investments among different kinds of assets.
A strategy that seeks to minimise risk by spreading your individual investments between multiple securities or asset classes. Diversification and risk are directly related to each other as the more you diversify your portfolio, the less risk you have.
A term used to describe the spreading of risk by investing in a number of different companies and assets*. Doing so will mean that you won't have all of your eggs in one basket.
Is an approach to investing that involves mixing asset classes, rather than investing only in one type of asset. It is much like the saying, 'don't put your all your eggs in one basket'.
Accumulation of different securities to reduce the risk of loss.
The spreading of funds amongst different asset classes to control and distribute any risk.
Spreading investment to reduce risk by buying different securities from various companies, businesses, locations and governments.
Spreading investment funds across a number of different asset classes and within asset classes.
Spread of securities in a portfolio with the aim of reducing risk.
The spreading of investment funds among classes of securities and localities in order to distribute and control risk. This is a fundamental law of investment meaning simply: "don't put all your eggs in one basket".
Dividing investment funds among a variety of assets with different risk, reward, and correlation statistics so as to minimize unsystematic risk.
The way in which retailers become active in business outside their normal operations -- and add different goods and/or service categories.
The strategy of spreading investments among a number of different securities in order to reduce the risks inherent in investing.
Diversification is an investment strategy for allocating your assets available for investment among different markets, sectors, industries and securities. The goal is to protect the value of your overall portfolio by diversifying your investment risk among these different markets, sectors, industries and securities.
spreading investments across different asset classes to minimize the risk of large losses.
This means as a lender you place many small bids among many borrowers. The risk that you will lose an amount of money that is loaned to one borrower is potentially greater than if you place many smaller bids on many borrowers. Prosper encourages lenders to diversify to diminish risk. Prosper makes diversification easy by allowing you to create "standing orders."
Holding more than one asset to broaden overall risk of failure
The method of reducing risk by distributing investment assets among a variety of investment securities which have different risk/ reward ratios.
A way to help balance the risk of losses by spreading out your assets among various investments such as stocks, bonds and money market funds. A decline in one investment may be offset by a rise in another.
The idea that you don't put all your eggs in one basket. How much you reduce the risk you incur by spreading your money depends on the type of assets involved. In theory, the more different types of asset you own, the lower the risk. Portfolio theory claims you need 15-20 different stocks to reduce the level of risk in a portfolio to that of the market average, though this assertion is only certainly true for large random samples of stocks over long periods of time. Aggressive investors prefer a strategy of concentration.
Reducing risk by spreading investments among different investments, sectors, markets and instruments.
An individual's spreading of its capital among many different types of investments for the express purpose of reducing risk.
Diversification involves acquiring several kinds of assets - for example, stocks, bonds, mutual funds, and real estate. By doing so, you may reduce the impact of a loss in any single asset class by a potential gain in another. When you own just one security or single fund, you concentrate risk; by owning several securities, you help spread risk among various securities which may have different risk characteristics.
The practice of spreading risk by investing in a number of securities that have different return patterns over time. When one investment is yielding a low or negative rate of return in a diversified portfolio, another investment may be enjoying positive or above-normal returns.
The practice of spreading investments among different securities to reduce risk. Diversification works best when the returns of the securities are varied, so that losses incurred by securities falling in price are offset by gains of those rising in price. By nature, mutual funds are a diversified investment.
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.
A technique intended to minimize risk by placing money in a number of securities. In a diversified portfolio, a decline in the value of one stock, for example, would not dramatically affect the overall value of the holdings.
Investing in many different securities and asset classes as a way of reducing total portfolio risk. When you have a diversified portfolio, gains or losses from one security may be offset by the performance of other securities
dividing assets among several different investment types in an effort to reduce risk.
The practice of holding a large number of assets in a portfolio so as to reduce the portfolio's sensitivity to an individual asset's return.
The strategy of investing in different asset classes and among the securities of many issuers in an attempt to spread overall investment risk.
The investment strategy of spreading money into a number of different investments in order to reduce overall investment risk. The aim is to offset losses in one or more investments by gains in others.
The process of selecting many different stocks within one asset class, and, in our opinion, many different asset classes that are not highly correlated to each other, in order to reduce investment risk.
The utilization of a wide variety of uncorrelated or weakly-correlated securities to fulfill portfolio asset allocation. Effective diversification will reduce risk.
The strategy of investing across a wide range of different securities in an attempt to offset potential risks. Mutual funds offer investors the benefits of diversification because they are pools of different types of securities.
Investing in a range of different types of assets. A good way of reducing risk in investing.
investing in more than one security, asset class, or equity style at the same time to reduce risk associated with the portfolio as a whole
Spreading investment risk by buying different securities in different companies in different kinds of businesses and/or locations.
1. Holding of a wide variety of different financial assets, each with its own set of risks, in order to reduce the overall risk of a portfolio. 2. In general business practice, extending the range of goods and services and/ or of geographic region, in order to spread the risk and to reduce dependence upon cyclical activities.
The process of dividing investment assets among a variety of securities or asset classes that have different risk and reward characteristics. Prudent diversification can help to lower overall investment risk.
An investment strategy practised by both individual investors and mutual fund managers designed to minimize the risk of market fluctuations by investing in a variety of investment instruments in a variety of markets. Dividend A portion of the company's profit that is distributed to shareholders in proportion to the number of shares they hold.
Investing in different companies, industries, or asset classes. Diversification may also mean the participation of a large corporation in a wide range of business activities.
The process of buying securities in different investment types, industry types, risk levels, and companies in order to reduce the loss from a possible company-local or industry-local loss of business (Diversification is illustrated by a famous saying, "Don't put all your eggs in one basket.")
An investment strategy that spreads investments across a variety of areas, which may include some or all of the following: securities, asset classes, geographic regions, and investment instruments. This strategy seeks to reduce risk in a investment, particularly during times of market volatility.
A strategy aimed at reducing the impact that volatility in one asset class, sector or market will have on your overall portfolio by spreading investments across various asset classes.
the ability to reduce risk of loss by holding many different assets.
Blending a variety of investments to reduce investment risk.
The combination in a portfolio of assets which have dissimilar behavior.
The development of many different species.
The allocation of investments among diverse securities (stocks, bonds, money market funds) in order to reduce overall risk of investing money.
Investing in a variety of investment instruments in a variety of industries as a way of diminishing the risk in a portfolio.
The practice of spreading investments over several different securities or types of investment vehicles to reduce risk.
Spreading your money over a number of securities. Diversification is the most effective way of reducing risks, and minimises the effect that the below-average performance of one particular security has on the fund as a whole.
Spreading investment over multiple products or securities. Diversification usually reduces portfolio risk because the returns on various asset classes are not perfectly correlated.
Reduces risk by holding a large collection of independent assets.
A defensive principle of investment portfolio construction that requires balancing the selection of portfolio assets among a variety of types of securities or industries. dividend. (1) For investments, a share of a company's earnings that the company pays to the owners of its stock. Dividends paid in cash are called cash dividends. Dividends paid in the form of additional shares of stock are called stock dividends. (2) For participating insurance policies, a portion of an insurer's surplus paid to the owner of an individual participating life or annuity policy. Commonly referred to as a policy dividend. (3) For group insurance policies, a premium refund paid to the policyholder of a group insurance policy. See also experience refund.
The concept of reducing risk by investing your money in different types of investments.
The spread of risk by investing in a portfolio of securities each of whose performance is affected by a different set of economic and market conditions.
Widening the scope of security to minimize risk.
Investing in a variety of investments to reduce investment risk.
A strategy for spreading assets among many different securities to reduce the risks inherent in investing in only one or a small number of securities.
The allocation of assets among various types of investments.
One of the most important concepts when putting together an investment portfolio. Diversification is achieved by mixing your assets between various types of stocks, bonds and other investment vehicles in order to minimize your risk while maximizing your return.
Directing money into a number of investments that have different levels of risk and return to spread overall risk potential.
The allocation of investment assets within an asset class, among different asset classes - such as bonds, stocks and real estate, or among geographical areas, to reduce risk.
(Diversification) Management principle that consists in allocating investments between various classes of securities, issuers, geographical areas or maturities, in order to reduce the portfolio's overall risk. Proper diversification improves the risk-return profile; in other words, it makes it possible to lower the level of risk incurred, for a given level of expected return.
Basically, not having all your eggs in one basket. Lowering your financial risk by having your assets in things that aren’t affected by the same trends.
Investing in different investments with varies risk levels and rates of return.
This term refers to putting investments in different asset classes (asset allocation) to reduce risk while still earning a reasonable return. Holding several classes of investments tends to reduce overall risk, although it does not protect against a loss. When one class of investment is not doing well, another one usually is. The way in which a portfolio is diversified can affect its rate of return.
The strategy for reducing risk by spreading assets among several investment categories.
An investment strategy in which an individual allocates funds to different asset classes in order to reduce risk because it is unlikely that different assets will move in the same direction at the same time.
The process of investing in a number of unrelated or partially interdependent assets or activities to reduce risk and achieve a more stable portfolio, so as not to “put all of one's egg's in one basket.
A technique for managing risk or to improve overall portfolio performance where risk is divided among multiple uncorrelated exposures.
Spreading of risk by putting assets in several categories of investments.
Act of investing in different kinds of investments to Lessen risk.
The practice of investing broadly across a number of different types of securities to reduce risk.
The practice of investing among several categories of investments (including different industries, countries, or investment vehicles) to enhance returnand reduce risk.
Similar to asset allocation, diversification is a strategy designed to reduce overall portfolio risk.
Differentiation between different lines of descent in the course of evolution.
To divide your investments among different securities that have different risks and rewards so that the return you receive is not greatly affected by external events or market fluctuations.
Investment strategy of spreading risk by investing the total available in a range of investments.
To expand your product line, services and/or your range of investments.
Spreading investments among different types of securities and various companies in different fields.
spreading money into different investments so as to help reduce the risk of loss.
The spreading of risk within a market, by placing investment capital in several different products rather than in a single product.
Investing in separate asset classes (stocks, bonds, cash) and/or stocks of different companies in an attempt to lower overall investment risk.
Spreading your assets among a wide variety of investments — stocks, bonds, cash or real estate, for example — thus reducing the impact of any one asset on the performance of your overall portfolio.
A concept aimed at reducing investment risks (i.e. ‘not putting all your eggs in the one basket'). You can diversify by spreading your money across asset classes, sectors, markets and fund managers.
A process of investing assets among a range of security types by sector, maturity, and quality rating.
Investing in different types of investments to spread risk.
The process of distributing funds across a number of asset classes to reduce the impact that volatility in one asset class, sector or market will have on the performance of your overall portfolio of assets.
attempting to reduce the risk of loss by spreading money into different types of investments
Investment strategy of spreading investments among a wide variety of securities, thus reducing the impact of any one security on overall portfolio performance.
The strategy of investing broadly across a number of different investments to reduce risk; a hallmark of mutual fund investing.
The spreading of risk by investing across a number of securities and markets within an investment portfolio.
Investing in different companies in various industries or in several different types of investment vehicles to spread risk.
Expansion of the product and service portfolio of a company. EVN extended its core business in the electricity, gas and heating segments to encompass water, waste incineration and infrastructure services.
Spreading investments among many different securities or sectors to reduce the risk of owning any single investment.
The practice of investing widely across a number of holdings with the aim of reducing risk.
Diversification is the investment strategy of putting your money into a number of different investments and asset classes in order to reduce overall investment risk.
The acquisition of a group of assets in which returns on the assets are not directly related over time. Proper investment diversification is intended to reduce the risk inherent in particular securities. An investor seeking diversification for a securities portfolio would purchase securities of firms that are not similarly affected by the same variables. For example, an investor would not want to combine large investment positions in the transportation sector alone because each industry within the sector is significantly affected by oil prices and interest rates.
The practice of investing broadly across a number of securities to reduce risk, and a key benefit of investing in mutual funds and other investment companies.
The concept of not putting all your eggs in one basket. The opposite of diversification is "concentration"—where a large portion of the investor's money is invested in only a few stocks. Let's say that two investors have $30,000 to invest. The first diversifies her portfolio by investing $1,000 in 30 stocks, one of which is ABC Corp. The second investor concentrates her portfolio by investing $10,000 in three stocks, one of which is ABC Corp. If ABC Corp. goes bankrupt and its stock becomes worthless, both investors will be upset. But the "diversified" investor (the first one) will only lose $1,000 while the "concentrated" investor will lose $10,000.
The distribution of investments among several companies to lessen the risk of loss.
the practice of spreading investment dollars over a variety of different investment vehicles (stock funds, bond funds, and fixed rate accounts) to reduce the amount of risk in your investment portfolio
The investment in a number of different securities. This reduces the risks inherent in investing. Diversification may be among types of securities, companies, industries or geographic locations.
The allocation of investment assets within an asset class and among asset classes. In general, the greater the number of holdings within an asset class and among asset classes, the greater the diversification, which reduces risk.
Spreading risk by placing assets in different types of investments (i.e., mutual funds, stocks, bonds, etc.) and various companies in different industry groups (i.e., pharmaceutical, utility, airline, etc.). See: Diversified Investment Company
The practice of buying several different types of investments over a broad range of industries, sectors and companies in order to reduce your risk if one particular industry, sector or investment performs poorly.
See on: Wikipedia Investopedia A method to reduce investment risk by putting funds in several different investment categories (growth, growth and income, and income). Diversification among stocks can be by sectors within an industry or by geographic location.
A risk management technique that consists of mitigating risk by taking positions in different asset classes or with different counterparties.
An investing strategy that spreads risk, and thus increases stability and safety, by investing assets over many different individual securities and/or asset classes.
process of reducing risks by spreading investment moneys among a variety of assets
Investing in a wide variety of investments so as to reduce overall risk.
Investing in a large number of securities across a range of different classes in order to reduce the amount risk in an investment portfolio.
A risk management technique that mixes a wide variety of investments within a portfolio, thus minimizing the impact of any one security on overall portfolio performance and reducing the overall risk.
The strategy of investing in a number of different securities or assets (things like stocks, bonds, real estate, cash or art). While this strategy does not assure a profit, it is designed to reduce the effect of market ups and downs.
The process of consummating individual investments in a manner that insulates a portfolio against the risk of reduced yield or capital loss, accomplished by allocating individual investments among a variety of asset types, each with different characteristics
A strategy that seeks to minimize overall portfolio volatility (risk) by spreading investments across multiple securities and lowly correlated asset classes. Diversification is the basic premise behind Modern Portfolio Theory.
Diversification is the process of optimizing an investment portfolio by allocating funds to a number of different assets. Diversification minimizes risks while maximizing returns by spreading out risk across a number of investments. Different types of assets, such as stocks, bonds, and cash funds, carry different types of risk. It is important to diversify among assets with dissimilar risk levels for an optimal portfolio. Investing in a number of assets allows for unexpected negative performances to balance out with or be superceded by positive performances.
Strategy for reducing the risk of investing in a single industry/market sector or a small number of companies, by spreading the risk over several industries/market sectors or a larger number of companies.
Spreading out the men in such a way as to increase the number of good rolls on a subsequent turn.
The practice of reducing risk by investing broadly across a number of securities that vary in style and objective.
A financial strategy to help reduce risk by spreading assets across different asset classes, such as stocks and bonds, or across different types of securities within the same asset class.
Reducing investment RISK by holding a variety of investments of different types.
Diversification is the process of reducing the collective risk at one point of investment by spreading the investments on various returns fetching concepts like stocks, bonds, real estate, securities, etc. Diversification reduces both the upside and downside potential of risk in a given time, when investments are diversified.
An investing or trading strategy in which positions are maintained in a variety of underlying instruments, for the purpose of reducing risk and increasing bottom-line profits.
Spreading investment risk by buying different securities (and different types of securities) issued by different companies in different industries and/or different countries. This ensures that investment capital, and thus risk, is not concentrated in one area. An example would be a balanced fund.
the method of balancing risk by investing in a variety of securities.
Spreading investment funds among different types of assets to reduce risk and help increase the consistency of returns. At various times in a market cycle, some asset classes may do well while others do poorly. By diversifying among a number of investments, investors can lessen the impact of poor performance in any one category.
Spreading of investments among different asset classes and locations in order to control and distribute risk. Put simply, 'don't put all your eggs in one basket'.
Diversification in finance involves spreading investments around into many types of investments, including stocks, mutual funds, bonds, and cash. Money can also be diversified into different mutual fund investment strategies, including growth funds, balanced funds, index funds, small cap, large cap, and sector-specific funds. Geographic diversification involves a mixture of domestic and international investments.