What is diversifcation?

Answer 1

It's another word for variety or a mixture of many different things.

Answer 2

Diversification is a risk management strategy that involves spreading investments across different assets to reduce exposure to any single investment or asset class. By diversifying, investors aim to lower overall portfolio risk and potentially increase returns by not being overly reliant on the performance of one asset. It is based on the principle of "not putting all your eggs in one basket."