Finance Glossary

Diversified management

Diversified management consists of investing through a fund in different asset classes (equities, bonds, derivatives, or real estate), from various sectors and different geographical areas.
Thus, when one sector or asset class experiences a decline, it does not mean that other sectors or asset classes will follow the same trend.  

In diversified management, the manager sets a primary objective beyond performance: portfolio diversification.  
Diversification is the act of reducing overall risk by spreading investments within the portfolio.  
The expression "not putting all your eggs in one basket" perfectly illustrates this method, whose goal is to reduce the risk borne by the investor.

4 ways to diversify your investment portfolio:

  • Distribute the portfolio across different asset classes.  
  • Incorporate assets from diverse geographical horizons and sectors.  
  • Include bonds with both short and long maturities.  
  • Acquire all securities through investment funds.