Diversification

A risk management technique that mixes a wide variety of investments within a portfolio. It is designed to minimize the impact of any one security on overall portfolio performance.


Diversification is possibly the greatest way to reduce the risk. This is why mutual funds are so popular.



A Guide To Portfolio Construction - This is a step-by-step approach to determining, achieving and maintaining optimal asset allocation.

Achieving Optimal Asset Allocation - Minimizing risk while maximizing return is any investor's prime goal, and the right mix of securities is the key.

Risk and Diversification - Basic introduction into what risk is, the different kinds and why investors should be aware of risk. Also, how diversification can help investors minimize risk.

Asset Allocation Strategies - Learn how to make the mix of securities the core your investing strategy.

The Dangers of Over-Diversification - We help to make clear the fine line between diversifying and overstretching your portfolio.
Related Terms

Asset Allocation

Mutual Fund

Portfolio

Systematic Risk

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