
Baskets
In finance, a "basket" refers to a collection of different assets—such as stocks, bonds, or commodities—grouped together to form a single investment. This approach allows investors to diversify their holdings, spreading risk across various securities rather than relying on a single asset. Baskets are often used in index funds or exchange-traded funds (ETFs), which aim to track the performance of a specific market index. By investing in a basket, investors can gain broad market exposure efficiently and manage risk more effectively while maintaining a streamlined investment strategy.