diversification

Meanings

1. 1noununcountablefinance

   The act of spreading money among different investments to lower risk.

   Grammar: Uncountable; used without 'a' or plural, e.g., 'Diversification is important.'

   Patterns

   • diversification of something
   • diversification into something

   Diversification helps protect your savings when one market falls.

   The fund manager recommended diversification across stocks and bonds.

2. 2noununcountable

   The process of adding variety to something, such as products or activities.

   Grammar: Uncountable; often followed by 'of' or 'in'.

   Patterns

   • diversification of something
   • diversification in something

   The company's diversification into new products boosted its profits.

   Diversification of the curriculum gave students more choices.

Common combinations

portfolio diversification

Portfolio diversification reduces the impact of a single bad investment.

economic diversification

The country focused on economic diversification to reduce reliance on oil.

diversification strategy

Their diversification strategy involved entering new markets.

diversification of risk

Diversification of risk is a key principle in investing.

Synonyms and how they differ

variety

Variety refers to a range of different things, while diversification emphasizes the process of adding that range.

expansion

Expansion means growth in size or scope; diversification specifically means adding different types of things.

Opposites

Word family

diversify verb

To add variety or spread investments.

diverse adjective

Showing a lot of variety.

diversity noun

The state of including different types.

Practice

Make it your own

Write a sentence using “diversification”, then check it and compare it with the examples above.

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