إدارة المحافظ المالية/ Portfolio ManagementExploring Portfolio Diversification for Investments for Reducing Risk and Maximizing Returns
Exploring Portfolio Diversification for Investments
for Reducing Risk and Maximizing Returns
Nikhil Jarunde
Email: nikhiljarunde24[at]gmail.com
Abstract: This paper delves into the realm of portfolio diversification, a cornerstone strategy for mitigating risk and maximizing returns
in the investment landscape. Through thorough exploration, it examines the theoretical underpinnings of diversification, its various
approaches across different asset classes, and its effectiveness in navigating the complexities of the financial market. The paper then
analyzes the potential trade - offs between risk reduction and return optimization, guiding readers towards a nuanced understanding of
diversification's role within a broader investment framework. Ultimately, it aims to equip individuals with the knowledge and tools to
construct diversified portfolios that align with their individual risk tolerance and financial goals.
Keywords: Portfolio Diversification, Investment, Risk