Abstract

Portfolio diversification stands as a well-entrenched strategy employed by investors to mitigate risk and achieve more favourable returns. the principal types of diversification strategies, encompassing the diversification of asset classes, geographical regions, industries, and investment styles. The extent to which advisors incorporate these strategies into their investment recommendations, and the perceived effectiveness of each strategy in reducing risk. The findings unearthed through this study serve to augment the existing corpus of knowledge, proffering valuable insights into the favoured diversification strategies employed by financial advisors. The most efficacious strategies for risk reduction, drawing on the experiences and perceptions of these advisors who assume a pivotal role in guiding investment decisions. The researcher had considered financial advisors to conduct the study and know the effectiveness of different portfolio diversification strategies on reducing risk and found that Diversified portfolio ensures that overall portfolio is not overly affected by downfall in any specific market segment and help investors to diminish the risk associated with political instability, economic fluctuations, or regulatory changes within a singular market.

Description