Word of the Week:
Insurance

Definition:  Diversification is the practice of dividing your money among lots of different types of investments. It’s the investing version of spreading your bets. Diversification is the process of allocating capital in a way that reduces the exposure to any one particular asset or risk. A common path towards diversification is to reduce risk or volatility by investing in a variety of assets

Fun Fact:  Diversification is often called “the only free lunch” in investing because it can reduce risk without reducing returns.

Video: Watch the video below to understand the concept better.

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Español:

Definicion: La diversificación es la práctica de dividir tu dinero entre muchos tipos diferentes de inversiones. Es la versión de inversión de repartir tus apuestas.

Dato Curioso: Diversification is often called “the only free lunch” in investing because it can reduce risk without reducing returns.

Video: Mira el vídeo a continuación para comprender mejor el concepto.