Portfolio Diversification is an investment strategy that involves spreading investments across different assets to reduce risk and improve returns.
Portfolio Diversification means not putting all your money into one investment. By investing in different asset classes, sectors, or geographies, investors can reduce the impact of poor performance from any single investment.
This strategy is widely recommended in financial planning and supported by guidelines from the Securities and Exchange Board of India.
"Instead of investing ₹1 lakh in one stock, an investor spreads it across stocks, bonds, and gold."