Why SELECTIVE Diversification is very important in any investment portfolio?

We all know that investing is fraught with risks, especially investing and holding assets classes like shares involve higher risks. The risk becomes even greater if excessive investment is done in a single stock. In order to mitigate this risk of holding an asset especially shares, diversification is the key. It is also prudent to…

Friends & Investing!

You would have come across many friends in your life. Some of them might have been known to you from childhood days, some through school, neighborhood, college, office, sports, extra coaching classes, etc. You would be maintaining contact with some while you would have lost touch with many. I am lucky to still have contacts…

Index Investing – a point of concentration risk!

This post is in continuation of my earlier post, wherein the primary reason was given as to why Index funds are being suggested for investment. Well, now the time has come to explain to why it is not the safest way, but the following is one of factors which has to be taken into consideration…

INVESTING AND “THE STORY OF THE BUNDLE OF STICKS”

Once an old man who thought he would not live long, called his often quarrelling sons and asked them to bring some sticks. He then tied the sticks together and gave the bundle to his youngest son. “Can you break that bundle of sticks?” he asked. The boy tried, but couldn’t. Then the other sons…