|
|
An investment strategy designed to manage risk. Components of the portfolio...
Dividing the investment into a variety of securities.
The act of not putting all your investments in only one or few assets. Bloopers & Blunders Objective
Investing in negatively correlated securities to avoid excessive exposure to market risk. In general, a portfolio is considered diversified with 15-20 stocks; however, in addition to the number of assets, it is important to include stocks or funds that are not highly correlated.
Diversified investment company Divestiture
Spreading the risk; Mutual funds spread investments among a number of different securities to reduce the risk inherent in investing.
The reduction of risk achieved by buying a portfolio of securities whose returns are not correlated.... more on: Diversification
The inclusion of a number of different investment vehicles in a portfolio, in order to increase returns or lessen risk exposure; may be random. The greater the diversification, all else equal, the lower the investor's risk.
The spreading of investment funds among classes of securities and localities in order to distribute and control risk. Investors can increase their potential return for a given level of risk by combining several investments within or across asset classes.
The spreading of the assets of a portfolio among a number of alternative investments in order to reduce risk.
Spreading an investment among a variety of securities to reduce risk.
The process of reducing specific risk in a portfolio by holding a number of weakly correlated assets. Although the portfolio will retain the risk of holding assets of that class, its exposure to the particular riskiness of this or that asset will be reduced. This is not simply because the percentage exposure to a particular asset is reduced (not all eggs in one basket), but because careful asset selection will result in a portfolio of assets that perform differently in different market conditions and therefore tend to produce a more stable return than a single asset of that type. A counter-intuitive consequence is that adding a highly risky asset to a portfolio may actually reduce its overall risk.
Essentially means spreading your investment risk across different funds or asset mixes. If the value of one or several should fall, the relative strength of the other funds will lessen the overall impact on your portfolio. It's the investment equivalent of not putting all your eggs in one basket.
In insurance, the spreading of the risk, accomplished by several different techniques, such as geographically, by type of risk, by type of coverage, or by insuring more risks that are separate exposures. Also applies to spreading investment risks, such as the diversification of cash value among different investment accounts in a variable or variable universal life policy.).
Spreading investment and contingent risks among different companies in different fields of endeavor.
portfolio strategy designed to reduce exposure to risk by combining a variety of investments, such as stocks, bonds, and real estate, which are unlikely to all move in the same direction.
Technique to mitigate portfolio risk by investing in different securities and thus reduce the risk of holding any single investment that could affect portfolio performance.
An investment strategy that involves establishing a portfolio of different investments by mixing industries and types of assets to spread their risk. In this way a particular event (introduction of automobiles, for example) will have less impact on the investor's total portfolio than if you owned a single investment in a buggy whip company. In other words, don't put all your eggs in one basket.
A method of portfolio asset allocation, which spreads investments over a broad range of securities and/or asset classes. The goal of diversification is to reduce the portfolio’s risk exposure to a specific security, sector, or asset class, thus balancing the portfolio's risk and return potential.
Spreading investments over a variety of investment categories in order to reduce risk. You may also invest in different countries spread your risk.
The practice of including in a portfolio different types of assets ( e.g., securities that differ by type or location of issuer, maturity, or credit quality) in an effort to minimize risks or improve overall portfolio performance. Diversifying a securities portfolio by type or location of issuer, for example, might protect the portfolio against adverse conditions in a particular industry or region of the country, while diversifying by credit quality might permit the acquisition of lower-rated, higher-yielding securities while protecting most of the portfolio's capital in higher quality securities.
Holding two or more assets to maximize return and minimize risk.
Diversification - Trade in the several markets (using several tools) in order to reduce the price risks.
The strategy of investing in several different types of assets, (and, in some cases, investing in several different regions of the world) in order to balance the portfolio and protect against large losses and high volatility.
to spread investment over several enterprises
A portfolio strategy designed to spread risk by allocating assets among a variety of investments (such as Stocks, Bonds, and Cash Equivalents).
Spreading investments over a number of individual assets, classes of assets, countries or investment managers in order to reduce total investment risk.
Investing across several different types of asset categories (stocks, bond and money market securities) and, within those classifications, investing in different types of securities and industries. The spreading of risk over various types of investments makes it less likely that a setback in a single sector will have an undue influence on an entire portfolio.
Diversification is the investment strategy of putting your money into a number of different investments in order to reduce overall Investment Risk. The goal is that losses in one or more investments may be offset by gains in others.
Spreading your risk among a variety of different types of investments (asset classes) to reduce the overall volatility of your portfolio. Because different types of assets tend not to move in tandem, a well-diversified portfolio should be able to perform better in a range of market conditions than a portfolio that has placed all its bets on just one asset class.
Concept of reducing the risk of a portfolio by investing in different asset classes and with various fund managers.
To place checkers in order to increase the number of good rolls on a subsequent turn, usually accompanied by increased risk of getting hit.
The practice of dividing financial resources among a variety of investments with different risks, reward, maturity etc. in order to minimise the overall risk. Français: Diversification Español: Diversificación
The process of helping reduce risk by investing in several different types of individual funds or securities.
A way to reduce investment risk through several categories of investment, such as stocks, bonds, mutual funds, money markets, real estate, precious metals, and other categories.
The process of holding a range of investments in order to diversify risk, so that if one investment performs badly, this is compensated by better returns from the remainder of the portfolio.
Investment in a number of different security issues to insulate a portfolio from a painful drop in one market area. This risk-reducing strategy is akin to not "keeping all your eggs in one basket."
The practice of distributing your assets among different types of financial instruments in accordance with your planning strategy. For instance, if you are near retirement age, your allocation of savings might focus more on "conservative" vehicles such as bonds, certificates of deposit, fixed-rate annuities and cash value life insurance, since these are less vulnerable to short-term risk. For more on this topic, see our seminar entitled Smart Investing: Step By Step.
A strategic approach to reducing portfolio risk. Diversifying by asset class, style and sector limits the potential impact of volatility on the portfolio because no one asset class, style or sector outperforms every year.
The concept of spreading your money among different investment options to reduce your overall risk. The idea is that if one investment option performs poorly, it only affects a small part of your total investments
Dividing investment funds among a variety of securities offering independent returns.
In a variable annuity, a method that helps an annuitant reduce or avoid risk by distributing funds over multiple asset classes, i.e., over stocks, bonds, or different security types within a given asset class; for example, an annuitant could diversify by investing in stocks within different industries.
The strategy of investing in a wide range of companies or industries to reduce the risk if an individual company or sector suffers losses.
when an investor, to reduce the risk of selection, spreads investment dollars over many securities.
Including of a number of different investment types in a portfolio to increase returns or reduce risk.
The construction of a portfolio to reduce risk by balancing defensively its funds among securities of different industries, different classes, and different company sizes.
A basic risk management tool in which an investor maintains a mix of common stocks, bonds money markets and other investments to reduce potential risk.
The act of allocating money into multiple investments in order to offset the impact of dramatic changes in any single investment.
moving into new markets or activities so as to reduce or spread risks, often by buying other companies in different fields.
The spreading or lowering of risk by investing in many different types of investments.
spreading an investment over a range of asset classes, sectors and regions with the aim of reducing risk. As the old saying goes "don't put all your eggs in one basket".
Spreading investment assets among stock, bond, and cash funds.
producing more than one product in order to enhance profits or reduce risk of loss
Spreading funds among different investments to minimize the risk of owning any single investment and having all your financial eggs in one basket.
The practice of spreading one's investments over several industries and company sizes in order to minimize risk while maintaining favorable reward potential.
The practice of putting money into a number of different investments. Investors diversify so they can reduce the risk of their investments losing money. If you put your money into five shares and five bonds, for example, you're practising diversification. In effect, you're hoping that if one investment is not doing well, it will be offset by most of the other investments, which presumably are making money. Buying a *collective investment scheme is one of the best ways to diversify. Collective investment schemes, because they are a collection of shares, bonds or other securities, are typically diversified investments.
The principle that wise investors should spread their risk among many different types of investment. A properly balanced portfolio will contain elements of share, deposit-based and property investments. Fund performance and objective achievement are not guaranteed
The process of choosing securities having dissimilar risk-return characteristics in order to create a portfolio that will provide an acceptable level of return and in acceptable exposure to risk.
Spreading investment funds out over various investment options (stocks, bonds, mutual funds and money market accounts, for example) in an effort to reduce risk. View LEI Lesson(s) that address this term
the act of introducing variety (especially in investments or in the variety of goods and services offered); "my broker recommended a greater diversification of my investments"; "he limited his losses by diversification of his product line"
Diversification is the strategy of minimizing unsystematic risk by dividing investment into a variety of securities. Diversification and risk are related in that the more you diversify the less risk you will have. An efficiently diversified portfolio will have the greatest return for a certain amount of risk.
Holding several investments that have different risks. The concept of "Don't put all your eggs in one basket." The chance that a single stock or other investment will lose money is offset by the chances of your other stocks and investments making money.
A portfolio strategy focused on reducing exposure to risk by combining a variety of investments which are unlikely to all move in the same direction. Diversification reduces both the upside and downside potential and allows for more consistent performance under a wide range of economic conditions. A diversified portfolio may contain stocks, bonds and real estate.
the spreading of investments over a range of asset classes, sectors and regions to reduce risk.
The investment strategy of spreading dollars among different markets, sectors, industries and securities. The goal is to protect the overall value of your investments in case a single security or sector takes a downturn.
|
