How Does Diversification Protect Investors?

A woman holds up an umbrella to minimize her risk. How does diversification protect investors from risk?

Perhaps you’ve heard that portfolio diversification helps protect investors from risk. If so, are you wondering how diversification protects investors? For starters, we need to understand what we mean by diversifying our portfolio to hedge against risk. Diversifying your portfolio simply means investing in a variety of different types of assets. Two Different Types of […]