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What is Diversification?

Diversification — Spreading investments across different assets, sectors or geographies to reduce the impact of any single one performing poorly.

In simple terms

Holding stocks, debt and gold diversifies your portfolio.

Why Diversification matters when you invest

Understanding diversification helps you make better-informed decisions when you invest and trade on ROAR by DP TradeKING. Open a free account to put it into practice — ₹0 delivery brokerage and zero-commission direct mutual funds.

Diversification — frequently asked questions

What is Diversification?

Spreading investments across different assets, sectors or geographies to reduce the impact of any single one performing poorly.

What does Diversification mean in the stock market?

Spreading investments across different assets, sectors or geographies to reduce the impact of any single one performing poorly. Holding stocks, debt and gold diversifies your portfolio.

Can you give an example of Diversification?

Holding stocks, debt and gold diversifies your portfolio.

Related terms

PortfolioPortfolioAsset AllocationPortfolioRisk ManagementPortfolio

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