Investment Diversification

Investment diversification is the strategy of spreading your investments across various assets, such as stocks, bonds, and real estate, to reduce risk. By owning a mix of different investments, you minimize the impact if one particular investment performs poorly. The idea is similar to the saying, "don’t put all your eggs in one basket." When some investments decline, others may perform well, helping to stabilize your overall portfolio and protect against potential losses, ultimately leading to more consistent and sustainable returns over time.