Apprendre / investing
Diversification means examining different sources of risk
More holdings do not automatically remove concentration.
Investopedia describes spreading exposure across asset types, sectors, countries and other characteristics. The important question is how holdings behave together, rather than simply how many appear in an account. Diversification can reduce dependence on one issuer or market segment, while broad market losses can still affect the portfolio.
Image source: Investopedia
Research sources & methodology
Original sources and publication references.
Communauté