Now, I’ll discuss one of the most important part of the Portfolio Management. This proverb will make you understand regarding the diversification. “Don’t put your all eggs in one basket”.
When you pick shares always try to keep in mind the concept of diversification. You will not invest all of your money in one particular stock or one particular sector. Try to diversify your investment like :
=> Buy different shares,
=> Buy share of different sectors,
=> Buy share of different category.
=> Buy share of different face value/Paid-up capital.
=> Finally, buy share in the view of trading, short term, mid term and long term.
(If you have any other point pls. discuss)
Why should you diversify your investment? It will keep your "investment risk" as low as possible. by JC
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