Diversification definition

Diversification means a risk management technique, which blends a broad variety of investment styles and asset classes within an investment portfolio.
Diversification means such existing industry in production which comes in the category of Existing Industry and holds Commercial Production Certificate by the competent authority, if it includes production of some new product in the existing industry after the appointed day of Industrial Policy, then the new product will come under diversification category, provided the Industrial unit has invested in the existing industry minimum 25% of the agreed investment in plant & machinery, and the total employment have been increased by 10% till date of production of the new product. Before commencing the procedure for "Diversification", the existing unit must take prior approval from the competent authority (who has issued the production certificate) stating detailed information about proposed investment compulsorily.
Diversification means manufacture of new article or articles by an industrial unit by 25 per cent or more (by value) of the approved or licensed capacity of the article or articles already manufactured by it during the preceding year.

Examples of Diversification in a sentence

  • Diversification of the portfolio is done in accordance with the limits set by the Group.

  • Diversification strategies shall be established and periodically reviewed.

  • Diversification should be interpreted in two ways: in terms of maturity as well as instrument type and issuer.

  • Diversification (asset concentration): Collateral should be sufficiently diversified in terms of country, markets and issuers with a maximum exposure to a given issuer of 20% of the Net Asset Value.

  • The level of diversification with respect to the underlying assets, and risk mitigation measures for less diversified investments Diversification of underlying assets is achieved through a) prudent mix of asset categories - i.e. cars (new, used), commercial vehicles, construction equipment, unsecured loans to individuals or small & medium enterprises b) total number of contracts in a pool c) average ticket size of loans and d) geographical distribution.


More Definitions of Diversification

Diversification means such existing industrial unit/industry who has established industry by commencing commercial production prior to appointed day under Industrial Policy 2009-14 and is in possession of E.M.part-2 and commercial production certificate issued by competent authority, in case of inclusion of new product in industry after the appointed day of industrial policy 2009-14 such new product shall fall under diversified category provided industrial unit/industry has invested minimum 25% capital investment of eligible investment in the existing plant & machinery after 01st November 2009. For this purpose commercial production should be commenced before 31st October 2014.
Diversification means to invest in low correlated differing securities, asset classes, and investment styles to reduce the investment risk (i.e. volatility) of a portfolio.
Diversification means spreading your account dollars among different types of investments.
Diversification means such existing industry in production which comes in the category of Existing Industry and holds E.M. Part-2 and Commercial Production Certificate by the competent authority, if it includes production of some new product in the existing industry after the appointed day of Industrial Policy 2014-19, then the new product will come under diversification category, provided the Industrial unit has invested in the existing industry, minimum 25% of the agreed investment in plant & machinery, from 01st November 2014 up to the date of commencement of commercial production and the total employment have been increased by 10 %. For this purpose commercial production should be commenced up to 31st October, 2019.
Diversification under this part (d) will be effected by distributing to Participants (in shares of Company Stock, cash or a combination of both, as determined by the Committee) the portion of their Company Stock Accounts, PAYSOP Accounts and Matching Accounts with respect to which a diversification election set forth herein is made. Any distribution shall occur within 90 days after the election hereunder is made and shall be subject to the provisions of Section 14(c).”
Diversification means investing in various asset classes, sectors, maturities and ratings with the purpose of reducing risk. The rationale behind this technique contends that a portfolio of different kinds of investments will, on average, yield higher returns and result in lower price volatility than any individual investment found within the portfolio.
Diversification means combining different types of investments so that their different behavior balances out and reduces risk.