Way for investors to minimize risk
- A risk management strategy that mixes a wide variety of investments within a portfolio
- One Mutual Funds can invest in hundreds (or even thousands) of individual stocks and bonds at once
- ETF
- Classes, Stocks, Bonds, real estate, commodities
- Diversifying types of investment too
- Stocks across different sectors and industries
- Bonds with different credit qualities, durations, and maturities
- Investing in foreign countries