Diversification

Diversification refers to dividing your financial portfolio and investments into different assets. You may have heard of the saying “Don’t put all your eggs in one basket” in this context. By diversifying into different companies, industries and countries, you can reduce risk and take better advantage of global return opportunities. A good example of diversification is the MSCI World. With this well-known index, you’re broadly invested in about 1,600 companies in 23 countries.