What is Diversified Portfolio?
A definition of Diversified Portfolio
“A diversified portfolio is an investment strategy that involves holding a variety of assets to reduce risk. It includes stocks, bonds, real estate, and other investments to spread risk across different types of assets.”

Business Glossary > What is Diversified Portfolio?
Examples of Diversified Portfolio in a Sentence:
A diversified portfolio can help protect against market volatility.
Investors are advised to maintain a diversified portfolio for long-term growth.
Creating a diversified portfolio is crucial for managing investment risks.
Why is Diversified Portfolio Important in Business?
A diversified portfolio is important because it helps investors mitigate risk by spreading investments across various asset types. This strategy can lead to more stable returns and protect against losses in any single investment category.
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Associated Terms
Here are some associated business terms and synonyms for “Diversified Portfolio”:
- Asset Mix
- Investment Spread
- Portfolio Diversification
Vanguard Diversified Portfolio
Vanguard is known for its diversified portfolio options, offering investors a wide range of funds that cover various asset classes and sectors. Their diversified approach aims to balance risk and return for clients.
Final Notes on Diversified Portfolio
When considering a diversified portfolio, investors should think about:
- The balance of asset classes
- Long-term investment goals
- Risk tolerance
Understanding these factors is essential for successful investment planning.
This has been a definition of Diversified Portfolio meaning.
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