Diversification
InvestingSpreading investments across different asset types, sectors, and geographies to reduce overall risk.
Example
Example: Consider an investor building a $100,000 portfolio. Diversification — spreading investments across different asset types, sectors, and geographies to reduce — directly affects investment strategy and long-term returns. Getting this concept right can mean tens of thousands of dollars in difference over a 20-year period. Model your portfolio with our investment calculator.