Short text questionThe ability to compare different options of investment such as bonds, fixed deposits, etc, is an advantage of:

The ability to compare different options of investment such as bonds, fixed deposits, etc., is an advantage of investment diversification.

Investment diversification refers to the strategy of spreading investments across various financial vehicles, industries, and other categories to reduce risk. By comparing different investment options, such as bonds and fixed deposits, investors can analyze the potential returns, risks, and liquidity associated with each choice. This thoughtful comparison helps investors construct a balanced portfolio that aligns with their financial objectives and risk tolerance. Ultimately, it empowers investors to make informed decisions, mitigate losses, and potentially enhance returns by selecting the best-performing assets in various market conditions.