diversification
n. uncountablen. the act of adding more variety to something to make it safer or more successful. In money matters, you do this by putting your cash into different types of investments.
n. the process of expanding the range of products, investments, or activities to reduce risk or increase growth. Often refers to the allocation of capital across various asset classes to mitigate the impact of any single failure.
Diversification is a key strategy for any long-term investor.
The company's diversification into renewable energy helped it survive the sudden crash in oil prices.
While geographic diversification can protect a portfolio against regional downturns, it may also introduce currency risks that require sophisticated hedging strategies to manage effectively.
From Medieval Latin diversificatiō, from diversificātus, past participle of diversificō (“diversify”), from Latin diversus (“turned in different ways”) + faciō (“make, do”). By surface analysis, diverse + -ification.
Often used with the preposition 'into' when describing a move into a new market or sector.