Finanças · Glossário
What is Diversification?
Definição rápida
Spreading investments across different assets to reduce risk. The only "free lunch" in investing.
Explicação completa
Diversification is the strategy of holding many different investments so a loss in one does not devastate the portfolio. The math behind it: when one asset zigs, another often zags, and the combined volatility is lower than either alone. A portfolio of 30+ stocks across different sectors has dramatically less risk than a single stock. Diversification works at every level: across stocks, across asset classes (stocks + bonds + real estate + cash), and across geographies. The extreme is an index fund, which holds thousands of companies at near-zero cost. Diversification cannot eliminate market risk — only specific (idiosyncratic) risk.
Calculadoras relacionadas
Calculators that use or explain Diversification.
Termos relacionados
More from Finanças
APR (Annual Percentage Rate)
The yearly cost of a loan, expressed as a percentage, including most fees. Used when borrowing money.
APY (Annual Percentage Yield)
The yearly return on a deposit or investment, including the effect of compounding. Used when saving money.
Compound Interest
Interest calculated on the initial principal AND on the accumulated interest from previous periods. The engine of long-term wealth.
Simple Interest
Interest calculated only on the original principal, not on accumulated interest. Used in short-term and consumer loans.
Principal
The original sum of money borrowed or invested, not including interest. The base on which interest is calculated.
Amortization
Spreading loan payments over time so each payment covers both principal and interest, with the loan fully paid off at the end.
Last reviewed: June 15, 2026 • Category: Finanças