[ ʌnda͡ɪvˈɜːsɪfˌa͡ɪd], [ ʌndaɪvˈɜːsɪfˌaɪd], [ ʌ_n_d_aɪ_v_ˈɜː_s_ɪ_f_ˌaɪ_d]
Related words: undiversified investments, illiquid investments, investment diversity, index funds investing, diversified portfolios, best investing practices
Table of Contents
Synonyms for Undiversified:
adj.• all (adjective)
- of a piece,
n.• monolithic (noun)
Other synonyms:• Other relevant words (noun):
How to use "Undiversified" in context?
As the markets have become increasingly specialized, investors have been urged to diversify their portfolios beyond just stocks and bonds. While this is a sound financial advice, it's important not to go too far.
Investors should have a diversified asset allocation that accounts for their specific risk tolerance, age, and financial goals. Typically, an asset allocation should be between 50% and 60% stocks, with 10% to 20% in bonds.
Investors should also avoid over-diversification. When an investment is more narrowly focused, it's more likely to perform well.
Word of the Day