portfolio diversification
/ˌpɔrtfəˌliˌdɪvərˈsɪfɪˌkeɪʃən/ · por.tfo.lio.di.ver.si.fi.ca.tion
noun
- The act of spreading investments across different asset classes, sectors, or geographic regions to minimize risk and maximize returns. To achieve long-term financial stability, it's essential to practice portfolio diversification by investing in a mix of stocks, bonds, and real estate.
noun
- A strategy or plan for managing and allocating investments to achieve a balanced and diversified portfolio. The financial advisor recommended a portfolio diversification plan that included a combination of low-risk and high-risk investments.
verb
- To spread investments across different asset classes, sectors, or geographic regions to minimize risk and maximize returns. By diversifying her portfolio, the investor was able to reduce her exposure to market volatility and achieve a more stable return on investment.
Synonyms
asset allocationinvestment diversificationrisk managementfinancial planninginvestment strategyportfolio management
Antonyms
Did you know? The concept of portfolio diversification has been widely adopted by investors and financial institutions, and is considered a fundamental principle of sound investment management.