Diversifying assets is essential to reduce risk in investments. By distributing capital across different asset classes, economic sectors, and markets, the impact of market fluctuations is minimized and the likelihood of achieving better long-term results is increased.

A detailed assessment of assets helps to identify those that are being underutilized or that could generate higher returns with more efficient management. Additionally, this process can uncover hidden or undervalued assets that could represent unexplored growth opportunities.