When it comes to investing, putting all eggs in the same basket is not wise. If anything happens to that basket, you will end up losing everything. To avoid such risks, it is advisable to diversify your investments.
A diversified portfolio is an investment strategy used by investors to invest in multiple assets to mitigate risks. This type of investment involves a wide range of asset classes with geographic and industrial exposure to spread out the risks. The main issue is to balance out the risks by investing in different industries and asset categories.