Asset Allocation & Risk
Why are investors told to diversify?
इस पृष्ठ का हिन्दी संस्करण तैयार हो रहा है। तब तक सामग्री अंग्रेज़ी में दिखाई जा रही है।
Diversification is a way of reducing exposure to any particular asset or risk by spreading your investment across multiple assets.
Unless asset prices move in exactly the same way, a portfolio that mixes several assets often has lower overall volatility than the individual assets. As the saying 'don't put all your eggs in one basket' suggests, the aim is to reduce the impact that a sharp fall in one asset has on your overall wealth.
This answer is general financial information as of 14/10/2026, not investment advice. Rules and tax rates change, so please also check the latest guidance from the source institution.