What is a diversified portfolio?

in investment •  3 years ago 

"A diversified portfolio is essential for success of all investors."
https://fififinance.com/us/diversified-portfolio

"If you want to build wealth and make the right moves for your investments, you need to build a diversified portfolio."
https://www.iwillteachyoutoberich.com/blog/diversified-portfolio-examples/

"Diversification is the practice of spreading your investments around so that your exposure to any one type of asset is limited. This practice is designed to help reduce the volatility of your portfolio over time."
https://www.fidelity.com/learning-center/investment-products/mutual-funds/diversification

"diversified portfolio is built from complementary assets, such as stocks and bonds, that don’t usually perform the same way."
https://www.jhinvestments.com/viewpoints/investing-basics/what-is-a-diversified-portfolio

"A diversified portfolio is a collection of different investments that combine to reduce an investor's overall risk profile. Diversification includes owning stocks from several different industries, countries, and risk profiles, as well as other investments such as bonds, commodities, and real estate. These various assets work together to reduce an investor's risk of a permanent loss of capital and their portfolio's overall volatility. In exchange, the returns from a diversified portfolio tend to be lower than what an investor might earn if they were able to pick a single winning stock."
https://www.fool.com/investing/how-to-invest/portfolio-diversification/

"A diversified portfolio is a portfolio constructed of investment products with different risk levels and yields, which seeks to lower the assumed risk and leverage a significant percentage of the variability of the portfolio performance."
https://www.myaccountingcourse.com/accounting-dictionary/diversified-portfolio

Authors get paid when people like you upvote their post.
If you enjoyed what you read here, create your account today and start earning FREE STEEM!