There are several advantages of diversification in a portfolio. The primary advantage is that it reduces the risk, the second primary advantage is, it allows the portfolio investor to maximize the return on their investments. Another advantage of diversification is that it allows investors to reallocate or re-diversify their portfolio investments as their financial goals change over time. Depending on the goals of the investor, a diversification plan can be put in place to help the investor reach their goals in the time frame that the investor has set. Diversification is not a set mold, where a certain percentage should be invested in stocks, a certain percentage in bonds, a certain amount mutual funds and a certain amount in real estate investment. The percentage
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