Investing in a variety of asset classes, such as stocks, bonds, & mutual funds, is one way to diversify. Investors can lessen the effect of any one asset underperforming by diversifygst slotsing their holdings across a number of asset types. Investing in various sectors or industries is another way to diversify on Groww. Investing in technology stocks alone, for instance, may not provide the same level of exposure as other industries like healthcare, consumer goods, or energy. This can offer greater market exposure and lessen sector-specific risk.