Diversification (finance)
Risk reduction technique
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📌 Topics
- Finance (1)
- Retirement (1)
- Commodities (1)
🏷️ Keywords
Gold investment (1) · Silver prices (1) · Retirement planning (1) · Portfolio diversification (1) · Precious metals (1) · Wealth preservation (1) · Investment strategy (1)
📖 Key Information
In finance, diversification is the process of allocating capital in a way that reduces the exposure to any one particular asset or risk. A common path towards diversification is to reduce risk or volatility by investing in a variety of assets. If asset prices do not change in perfect synchrony, a diversified portfolio will have less variance than the weighted average variance of its constituent assets, and often less volatility than the least volatile of its constituents.
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- 🌐 Gold as an investment (1 shared articles)
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- 🌐 Silver as an investment (1 shared articles)
- 🌐 Retirement planning (1 shared articles)