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What is diversification?

Diversification occurs when you invest in many different securities across many different sectors and asset classes.

Diversification is an investment strategy that aims to mitigate risk by incorporating a variety of investments across each asset class. Diversification can be achieved by either owning a number of different stocks/bonds or by owning an ETF which is comprised of a diversified basket of securities. At Nest Egg, we use ETFs to build out globally diversified portfolios investing our clients in stocks, bonds, real estate, commodities and cash.