Definition, Meaning & Synonyms

diversification

noun

/ˌdaɪ.vɚs.ɪ.fɪˈkeɪ.ʃən/

Definition

The process of making something diverse or varied.

Examples

The company’s diversification into new markets helped safeguard it from economic downturns.
Investors often look for diversification in their portfolios to minimize risk.
Diversification can lead to more creative ideas when multiple perspectives are considered.

Meaning

Diversification refers to the strategy of allocating resources or investments to a range of sectors or products to reduce risk and increase potential returns.