Why Is Diversification Important? 1. Risk Reduction: The most significant advantage of diversification is the reduction of risks. For example, if the sector of technology is going down, then the losses can be curtailed by having a diversified portfolio if other sectors like healthcare or consumer goods are performing good. 2. Smoother Returns: Diversification may lead to stable retu... https://topcollegesadmission.in/college-list/bca/pune