investment-spread

Vocabulary Word

Definition

'investment spread' is a way to distribute your investments in different types of assets. This reduces the risk of losing all your money if one investment doesn't work well.

Examples in Different Contexts

In Asset Allocation, 'investment spread' is the strategy of distributing investments among different categories to achieve a desired risk-reward balance. An asset manager might say, 'Effective investment spread involves balancing between stocks, bonds, and alternative investments.'

Practice Scenarios

Economics

Scenario:

Achieving a diversified and stable economy requires strategic allocation across different sectors. This is crucial for the country's long-term growth.

Response:

I believe a well-rounded investment spread across various sectors is key to sustained growth, allowing us to weather economic ups and downs.

Finance

Scenario:

Given the current volatility in the market, it's worth considering safer investment options along with high-risk, high-return ones.

Response:

Agreed. I think creating a balanced investment spread that includes both safe and high-return options could minimise risk.