What Is Diversification? Definition as Investing Strategy
Asset ClassesFund managers and investors often diversify their investments across asset classes and determine what percentages of the portfolio to allocate to each. Each asset class has a different, unique set of risks and opportunities. Classes can include:Stocks—shares or equity in a publicly traded companyBonds—government and corporate fixed-income debt instrumentsReal estate—land, buildings, natural resources, agriculture, livestock, and water and mineral depositsExchange-traded funds (ET...
What Is Diversification? Definition as Investing Strategy
Asset ClassesFund managers and investors often diversify their investments across asset classes and determine what percentages of the portfolio to allocate to each. Each asset class has a different, unique set of risks and opportunities. Classes can include:Stocks—shares or equity in a publicly traded companyBonds—government and corporate fixed-income debt instrumentsReal estate—land, buildings, natural resources, agriculture, livestock, and water and mineral depositsExchange-traded funds (ET...
