diversifcation means to spread out your investments into different asset classes or sectors within an asset class. So instead of buying only equity you might have investments into REITs, bonds, equity or other yield bearing assets. You can further diversify inside of each asset class, for example in equity you might buy a mix of technology stocks, mining stocks or consumer discreationary stocks. The goal of doing this is to spread out your risks, you want to buy things that have a mix of correlation to the market (beta) so when something gets shit on your portfolio as a whole doesn't hurt as much.
It's like the old saying, don't put all your eggs in one basket. It's the same for your investments.
Some readings if you want
https://www.investopedia.com/terms/d/diversification.asp
in response to @Batangan06
diversifcation means to spread out your investments into...
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