What is Diversification

What Is DiversificationAnother way to reduce the risk in your portfolio is to include bonds and cash Because cash is generally used as a shortterm reserve most investors develop an asset allocation strategy for their portfolios based primarily on the use of stocks and bonds It is never a bad idea to keep a portion of your invested assets in cash or shortterm money market securities Cash can be used in case of an emergency and shortterm money market securities can be liquidated instant