#Asset DiversifyYourAssets
diversification is an investment strategy that involves spreading investments across different asset classes and securities to reduce the risk of losing money. It's essentially "not putting all your eggs in one basket".
Here's a more detailed explanation:
Reducing Risk:
Diversification aims to mitigate the impact of poor performance in any single investment by distributing investments across various asset classes, industries, and geographic regions.
Different Asset Classes:
Examples of asset classes include stocks, bonds, real estate, commodities, and cash equivalents.
Within Asset Classes:
Diversification also extends to within asset classes. For example, within stocks, you can diversify by investing in different sectors, industries, and companies.