2026-07-12

What is Diversification?

What is Diversification?

If you carry 10 eggs in one basket and drop it, all your eggs break. But if you put 2 eggs in 5 different baskets, dropping one basket only breaks a few eggs. In investing, diversification means buying stocks, bonds, and ETFs in different places so you do not lose all your money at once.

It is the easiest way to lower your risk while growing your money.

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