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Topic: Diversification

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	Diversification
		Diversification strives to smooth out unsystematic risk events in a portfolio so that the positive performance of some investments will neutralize the negative performance of others.
		Therefore, the benefits of diversification will hold only if the securities in the portfolio are not perfectly correlated.
		Further diversification benefits can be gained by investing in foreign securities because they tend be less closely correlated with domestic investments.
	www.investopedia.com /terms/d/diversification.asp (536 words)

	Beginners' Guide to Asset Allocation, Diversification, and Rebalancing
		But before you hire anyone to help you with these enormously important decisions, be sure to do a thorough check of his or her credentials and disciplinary history.
		Diversification is a strategy that can be neatly summed up by the timeless adage "Don't put all your eggs in one basket." The strategy involves spreading your money among various investments in the hope that if one investment loses money, the other investments will more than make up for those losses.
		Because achieving diversification can be so challenging, some investors may find it easier to diversify within each asset category through the ownership of mutual funds rather than through individual investments from each asset category.
	www.sec.gov /investor/pubs/assetallocation.htm (2973 words)

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