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Meaning & use

diversified portfolio

phrase·Academicbusinessfinance

Last updated

UK/daɪˈvɜːsɪfaɪd pɔːtˈfəʊliəʊ/
US/daɪˈvɝːsəfaɪd pɔːrtˈfoʊlioʊ/

Meanings

  1. phrasecountablebusinessfinance

    A collection of investments spread across different types of assets to reduce risk.

    Grammar: Countable noun phrase: a diversified portfolio, diversified portfolios.

    Patterns

    • build a diversified portfolio
    • hold a diversified portfolio
    • a well-diversified portfolio

    Financial advisers often recommend a diversified portfolio of stocks, bonds, and cash.

    She built a diversified portfolio so that one bad investment would not ruin her savings.

    A diversified portfolio usually rises and falls less sharply than a single stock.

  2. phrasecountablefigurativebusiness

    A range of different activities, products, or projects that a person or company is involved in.

    Grammar: Used figuratively outside finance, especially for companies or careers.

    Patterns

    • a diversified portfolio of something
    • have a diversified portfolio of skills

    The publisher has a diversified portfolio of magazines, apps, and books.

    Young workers are advised to keep a diversified portfolio of skills.

Word forms

pluraldiversified portfolios

Common combinations

build a diversified portfolio
It takes years to build a diversified portfolio.
well-diversified portfolio
Her well-diversified portfolio survived the market crash.
diversified portfolio of stocks and bonds
He holds a diversified portfolio of stocks and bonds.
maintain a diversified portfolio
Investors should maintain a diversified portfolio as they age.

Synonyms and how they differ

balanced portfolio
Emphasizes equal weighting rather than variety; a balanced portfolio is often, but not always, diversified.
spread of investments
A plain-English phrase; less formal and not a fixed finance term.
mixed portfolio
Similar, but 'mixed' can also suggest a mixture of good and bad, so it is less precise.

Opposites

concentrated portfolio

Word family

diversify verb
To put money into different investments or add variety.
diversification noun
The act of spreading investments or activities.
portfolio noun
The collection of investments or work a person holds.

Commonly confused: diversified portfolio or diverse portfolio?

diversified portfolio vs diverse portfolio

Diverse describes variety that exists; diversified stresses that someone actively spread the investments.

Practice

A diversified portfolio is one that:

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