Recent Changes in a Mutual Fund's Operations Reducing Risk with Dollar Cost Averaging

Reducing Nonmarket Risk

Nonmarket risk can be reduced through diversification. By owning several different stocks in different industries whose stock prices have shown little correlation to each other, you reduce the risk that nonmarket factors will adversely affect your total portfolio.
Source: http://www.investorguide.com/igu-article-823-stock-basics-measuring-a-stocks-risk.html