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…