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Diversification
Diversification spreads investments across different assets, sectors, or instruments to reduce concentration risk.
Holding funds across asset classes can soften the impact if one sector or security performs poorly.
The phrase about not putting all eggs in one basket became a popular shorthand for diversification.
Definition
Diversification spreads investments across different assets, sectors, or instruments to reduce concentration risk.
Case Study
Holding funds across asset classes can soften the impact if one sector or security performs poorly.
Historical Reference
The phrase about not putting all eggs in one basket became a popular shorthand for diversification.
Illustration
