Meaning & use

diversification

noun·Academic

The process of adding variety, especially by spreading investments or activities to reduce risk.

See it in a sentence

The fund's diversification across industries helped it survive the market downturn.

The farmer's diversification into fruit crops protected him from a single bad harvest.

A note on using this word

Diversification is especially common in finance, where it describes spreading investments across assets to reduce overall risk.

Words with a similar meaning

Choose a synonym to suit the sentence. Meanings can overlap without being identical.

Words with an opposite meaning

specialization

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