glossario

In finance, it's like 'not putting all your eggs in one basket'. Diversification means not limiting yourself to buying one or a few financial instruments but many, and they should be different from each other (for example, shares or bonds issued by various companies in different sectors), or in different asset classes (cash, bonds, shares, real estate). With the same expected return, diversification reduces risks because the returns of different financial instruments and asset classes do not always move in the same direction.