English Reference
noun

diversification

n.
US /daɪˌvɝsəfəˈkeɪʃən/ UK /daɪvˌɜːsɪfɪkˈeɪʃən/ di·ver·si·fi·ca·tion UK spelling diversifications

  1. 01 C1 Advanced Academic

    the act of adding different types of things to a group to create more variety.

    the process of becoming more varied or diverse in form or character.

    Simple

    The diversification of the local economy helped the city survive when the main factory closed.

    In context

    Ecological diversification within the rainforest allows thousands of species to coexist by occupying distinct niches within the same environment.

    variationexpansionbranching out
  2. 02 C1 Advanced Technical Science

    putting your money into many different types of investments so you do not lose everything if one fails.

    a risk management technique that mixes a wide variety of investments within a portfolio to minimize the impact of any single asset's performance.

    Simple

    Financial advisors recommend diversification so that your savings are safe even if the stock market drops.

    In context

    The fund manager insisted on geographic diversification, arguing that exposure to emerging markets would hedge against a downturn in domestic equities.

    Usage

    Often used with the preposition 'of' (diversification of assets) or 'into' (diversification into bonds).

    spreading riskallocation
  3. 03 C1 Advanced Technical

    when a company starts making new products or enters new markets to grow its business.

    a corporate strategy of entering new markets or industries that are distinct from a company's core business operations.

    Simple

    The farm's diversification into tourism helped them earn money during the winter months.

    In context

    The tech giant's diversification into healthcare services represented a significant shift from its traditional focus on consumer hardware.

Previous studies suggest that regional variations in the size of snails available in different areas have contributed to the diversification of this beetle's body shape.

Phys.org· 17 Aug 2026

This diversification shields criminal groups from “enforcement shocks,” such as crackdowns on drug smuggling.

The Conversation· 10 Aug 2026

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.

Etymology adapted from Wiktionary, available under CC BY-SA 4.0.

This entry
Origin Latin diversus
Level C1 · Advanced
Frequency Frequent
Updated