Diversification
Diversification is an investment strategy that spreads investments across different asset classes to reduce risk.
Diversification involves holding a variety of investments within a portfolio to spread risk across various asset classes, such as equities, bonds, and alternative funds. This strategy helps mitigate the impact of individual asset class volatility, particularly during market downturns. The goal is to reduce drawdown and volatility while maintaining the potential for returns. Diversification works hand-in-hand with portfolio management and risk management.
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