Investment Pyramid

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Investment Pyramid

An investment strategy in which an investor diversifies the risk of his/her portfolio while also leaving the possibility for a large return. One does this by putting most of the investor's money in low risk investment vehicles; this forms the "base" of the pyramid. One then puts a moderate amount of money in medium risk investments, and finally forms the "top" of the pyramid by placing a small amount of money in high risk, speculative investments. See also: GARP.
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