The phrase "diversification purposes" refers to the act of spreading investments or resources across different areas to reduce risk. It is done to avoid putting all eggs in one basket and achieve a balanced portfolio. Full definition
But I need to add one more utility position for diversification purposes, and if I can scrape together the capital, this one will be in my portfolio. (dividendsdiversify.com)
In the example below, we see how some asset classes used for diversification purposes actually performed worse than the core S&P 500 during major market downturns. (swanglobalinvestments.com)
If you do want to own a materials or energy stock — which you may want to do for diversification purposes — seek out the lowest - cost producer. (canadianbusiness.com)