It reduces concentration
Investor.gov describes diversification as spreading money among investments to reduce risk.
It does not eliminate loss
A diversified portfolio can still decline when broad markets fall.
Diversification has several levels
Asset classes, industries, countries and individual holdings can all affect concentration.
Keep this conceptual
Specific allocation percentages belong to an individual's goals, time horizon and risk situation and are outside this site's general scope.
Educational information only. Use current product terms and the rules that apply in your country. For decisions with significant financial consequences, consider an appropriately qualified professional.