What is the primary advantage of implementing a diversification strategy in investment planning? Option: It necessitates more frequent trading activities within the portfolio, It reduces the overall risk exposure of the investment portfolio, It ensures consistently higher returns compared to other strategies, It eliminates the need for careful financial planning and analysis

What is the primary advantage of implementing a diversification strategy in investment planning?

What is the primary benefit of diversification in investment?

What is the key benefit of diversifying your investments across different asset classes?

Why is diversification considered a crucial principle in investment management?

Why is diversification important in a long-term investment strategy?

What is the primary reason for diversifying investments across different sectors and asset classes?