investing
diversification
A risk management strategy that mixes a wide variety of investments to reduce exposure to any single asset.
Example
"Her diversification across stocks, bonds, and real estate protected her when the stock market crashed."
💡 Memory Tip
DIVERSE-ification — make your investments diverse. Don't put all your eggs in one basket.
Etymology
From Latin 'diversus' (varied) + facere (to make) — making a varied portfolio.
Common Misspellings
diversifcationdiversifikationdiversificatondiversifacation
Related Terms
See Also
asset allocationcorrelation