BANKING AFFAIRS

Detailed explanation-1: -It is one way to balance risk and reward in your investment portfolio by diversifying your assets. 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.

Detailed explanation-2: -Diversification is a risk management technique that mitigates risk by allocating investments across different financial instruments, industries, and several other categories. The purpose of this technique is to maximize returns by investing in different areas that would yield higher and long term returns.

Detailed explanation-3: -Diversification is a strategy that mixes a wide variety of investments within a portfolio in an attempt to reduce portfolio risk. Diversification is most often done by investing in different asset classes such as stocks, bonds, real estate, or cryptocurrency.

Detailed explanation-4: -Diversification reduces risk by investing in vehicles that span different financial instruments, industries, and other categories.

Detailed explanation-5: -Risk diversification is the process of investing across a range of industries and categories within one portfolio. This ensures that even if some assets perform poorly, other areas of the portfolio associated with different sectors can cover the loss.