Diversification

Written by  //  June 22, 2011  //  Insurance Glossary: A-D, Insurance Terms  //  Comments Off on Diversification

This involves spreading one’s savings over a wide range of investment alternatives, such as savings account, common stocks, CDs, deferred annuities or real estate. At various times in a market cycle, some asset classes may do well while others do poorly. By putting money into a variety of accounts, investors can reduce the impact of poor performance in any one asset category and improve the opportunity for overall steady, positive returns.

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