Diversification

byPaytm Editorial TeamLast Updated: December 29, 2025

Meaning & Definition

Diversification is an investment strategy where money is spread across different assets to reduce risk. It helps balance losses from one investment with gains from another.

Key Points

  • Reduces investment risk
  • Mix of asset types
  • Improves stability
  • Key investment principle

Author

Paytm Editorial Team

The Paytm Editorial Team is a collaborative group of writers, editors, and industry experts. We're dedicated to bringing you the latest insights, news, and guides on digital payments, financial services, and the technology that's shaping India's economy. We offer easy-to-follow guides and insights to help you explore Paytm’s products, features, and services. Our goal is to provide clear, reliable, and helpful information to empower you on your financial journey.

You May Also Like

Pradhan Mantri Garib Kalyan YojanaLast Updated: November 14, 2025

Meaning The Pradhan Mantri Garib Kalyan Yojana (PMGKY) was launched to support the poor during crises like the…

Critical Illness CoverLast Updated: December 12, 2025

Meaning Critical Illness Cover is an insurance benefit that pays a lump-sum amount if you are diagnosed with…

TB-Mukt Bharat AbhiyanNovember 3, 2025

Meaning The “TB-Mukt Bharat Abhiyan” (Full form: Tuberculosis-Free India Campaign) is a crucial national health initiative.Definition and Goal…

UPI LinkingLast Updated: July 18, 2025

Meaning UPI Linking is the process of connecting your bank account to a UPI-enabled mobile application. It allows…