Diversification of investments is not putting all your eggs in one basket! But in reality, it is more of an understanding that different asset types behave differently based on their economic function and over time their ability to generate a profit is defined by what they do in society. Each of the 11 different stock sectors underlying economics engines behave based on their function, i.e. debt markets, stock sectors, annuities, real estate and so on. Each has its place, the question is what place in your portfolio and why. The process of choosing which investment types is just the beginning, the continued monitoring of those asset types, how many different holdings in each asset type and how they perform is what Management is about.