Diversification of investments Diversification of investments All too often we hear about diversification and the stock market savings plan.
Diversification is a term used to describe a very simple fundamental.
It means to spread your money around, so that if one investment doesn t work out, you don t lose all your money. Another great thing about mutual funds is that if one company crashes, the other companies will carry your investment and minimize your losses. One of the best ways to diversify your money is by placing your money into a mutual fund. A mutual fund is the no-brainer of investing. The mutual fund is made up of several stock options from several different companies.