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What Is Diversification?

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You:Ā ā€œDiversification. Thatā€™s something to do with eggs and baskets, right?ā€

Not so fast, busterā€¦

Diversification means spreading your investments so you can help control the total risk of your investment portfolio. The aim of diversification is to hold investments that perform differently to each other so that losses made on some investments will be balanced by what you gain on others.Ā Howeverā€¦ there are other types of diversification that need to know about. Tune in now!

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