Financial Terms Glossary
The most important financial terms - with simple and concise explanations.
Diversification
Diversification means spreading your risk when investing money. As the saying goes: don’t put all your eggs in one basket. As a practical example, this might mean selecting assets across different asset classes and/or regions to mitigate overall portfolio risk. The result is that the loss of one investment can be, at least partially, offset by the gain of another.
There are risks associated with investing. The value of your investment may fall or rise. Losses of the capital invested may occur. Past performance, simulations or forecasts are not a reliable indicator of future performance. Please refer to our risk information.
For new clients: 4% p.a. interest (Baader Bank) on up to €1 million for 4 months. Thereafter 2.6% p.a. variable interest on up to €100,000. Interest only with PRIME+. Learn more.
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