Why do many investors choose to make diversification a key element of their investment strategies?

Spreading out investments through diversification reduces the likelihood of losing money is the way diversification of investment strategies.

What is diversification, and what does it reduce in a portfolio?

In order to lower the risk of market volatility, investors frequently use the investment strategy of diversification, in which they distribute their portfolio among a variety of securities and asset classes.

It is a component of asset allocation, which refers to how much of a portfolio is invested in different asset types.

Thus, Spreading out investments through diversification reduces the likelihood of losing money

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