Dogs of the Dow - Dividend stocks / High dividend yield stocksDogs of the Dow - Dividend stocks / High dividend yield stocksDogs of the Dow Newsletter
Dogs of the Dow - Dividend stocks / High dividend yield stocks
Main Menu Dogs of the Dow main menu

Portfolio Diversification  

Facebook Google+ WordPress LinkedIn Twitter Blogger Tumblr Email Gmail

Portfolio diversification refers to the practice of holding a wide range of investment instruments in the hopes of spreading the risk without sacrificing return. The principle behind portfolio diversification is the same as the one behind the saying, "don't put all your eggs in one basket." Investments are risky by nature; in order to mitigate the risks, investors are advised to buy stock in different market sectors, countries, etc. With a diversified portfolio, if technology stocks start to take a nosedive the investor will not lose everything but will take a hit in only one portion of their total investment portfolio.

Portfolio diversification is the best way to address the unsystematic risk in the marketplace. Each company, industry, and sector has unique risks; by holding a wide range of investment products the investor can diversify away these risks and weather the inevitable setbacks in specific companies or industries. Mutual funds are an easy way to create a diversified portfolio without the complexity of picking and choosing investments individually.

Related Terms: Asset Allocation - Dollar Cost Averaging - Common Stocks - Stock Market Newsletter - Value Stocks - Growth Stocks - Large-Cap Stocks

Dogs of the Dow | Dogs 2018 17 16 15 14 13 12 11 10 09 08 07 06 05 04 03 02 01 00 99 98 97 96 | Dog Years
Daily Performance: Current Doggishness | Daily Performance | YTD Performance | Stock Research
Weekly Performance: Current Doggishness | Previous Doggishness | Weekly | YTD | the Dow
Dog Steps | FAQ | FAQ 2 | Site Tips | Glossary | Top Dog Brokers | Broker Reviews
Dogs of the Dow Newsletter | Feedback | Tell a Friend | Privacy | Accolades
Stock Screens: Current Doggishness | 2018 Dogs of the Dow | Highest Dividend Paying Stocks
Highest Dividend Paying Large-Cap Stocks Today | Highest Dividend Paying Mega-Cap Stocks
Largest Companies by Market Cap Today | Dow Jones Industrial Average Companies Today
Dow Jones Transportation Average Companies | Dow Jones Utilities Average Companies
Most Active Stocks Today | Biggest Stock Gainers Today | Biggest Stock Losers Today
Ex-Dividend Date Calendar | Lowest PE Ratio Stocks | Stock Symbols List
©1995-2018 Dogs of the Dow - All rights reserved