Portfolio Diversification

Portfolio diversification is the practice of spreading your investments across various assets, such as stocks, bonds, and real estate, to reduce risk. The idea is that if one investment performs poorly, others may perform well, balancing the overall performance of your portfolio. By diversifying, you lower the chances of losing money because not all investments will react the same way to market changes. This strategy aims to achieve more stable returns over time, helping to protect your capital while still pursuing growth.