To diversify means to increase the variety or range of something, typically in order to reduce risk and improve overall performance. It can refer to expanding into new markets, products, services, or investments as a way to spread out risks and avoid being overly dependent on one area. Diversification is often used as a strategy for managing portfolios, where it involves allocating funds across different types of assets such as stocks, bonds, and commodities in order to reduce the impact of poor performance by any single asset class. In summary, diversify means to increase the variety or range of something in order to improve overall performance and manage risk more effectively.