Diversification is the inclusion of a number of different investments in a portfolio with the goal of increasing returns or reducing risk.

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Diversification is a widely accepted strategy to minimize risk by investing in a variety of asset classes, sectors, or regions. It also aims to increase returns by spreading out investments across a range of assets with different risk-reward profiles. By doing so, the portfolio can potentially benefit from the positive performance of some assets while offsetting the negative impact of others, leading to a more stable and consistent investment outcome over time.

Diversification Is the Inclusion of a Number of Different Investments