多样化

What is Diversification?

多样化is the act of spreading investments amongst different assets, companies and sectors. The idea behind this is to reduce risk. If one investment fails, the investor will only lose a proportion of their money rather than all of it if they had invested solely in that asset.

多元化用于许多不同的投资理论,这是一种主要投资大量较高风险资产的理论之一,目的是,从成功的人那里的高收益将超过失败的损失。

A good investment portfolio should always be diversified as it reduces risk (diversifiable risk) and allows the investor to gain exposure to multiple sectors.

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