Hello guys! It’s Wednesday, and we are back with our next episode of Bazaar ke Sanskaar for you.
So, we have a question today: Do you invest in the stock market? Are you one of those who believe that investing in a few stocks is enough, or maybe you’ve invested in every stock that catches your attention? In today’s episode, our friends Maya and Ayaan discuss whether under-diversification or over-diversification is right in the stock market.
If you still haven’t seen our last episode, here is a quick explanation of Bazaar ke Sanskaar, our educational series for investors. Through short stories, it highlights the dos and don’ts of investing to help you make informed decisions and cultivate sound investment habits.
Maya, diversify your portfolio yeh toh suna hi tha, lekin ye over-diversify aur under-diversify kya hota hai?
Hmm, yeh sahi question poocha tumne, Ayaan. Ab tum ek fitness enthusiast jo ho, toh tumhaari hi bhaasha mein samjhaati hoon
Hain? Ab ye investment aur mere health ka kya connection hai?.
Batati hoon. Maan lo tum apna weekly balanced meal plan kar rahe ho. Toh kya tum sirf, rice khaaoge, ya sirf vegetables? Ya fir protein intake karoge poore hafte?
Bilkul nahi. Vo toh bohot boring aur unhealthy hoga. Main toh teeno ka mix prefer karunga.
Exactly, vahi toh raaz hai healthy diet ka. Same with investing. Diversification ko apne portfolio ka balanced meal samjho.
Iska matlab agar main thode stocks mein invest karoon, toh roz sirf rice khaane jaisa hoga?
Haan aur vo risky hoga. Agar vo stocks perform nahin kar paaye, toh tumhare portfolio ka balance bigad jaayega aur tumhe nuksaan hoga.
Aur agar main bohot saare stocks mein invest karoon toh?
Vo phir bohot saare dishes ek saath khaane jaisa hoga. Tum confuse ho jaaoge aur ho sakta hai ek bhi dish enjoy na kar paao. Iss liye balance dhoondhna zaroori hai.
Samajh gaya, jaise ek balanced diet mere health ke liye zaroori hai, vaise hi ek balanced portfolio bhi mere investments ke liye zaroori hai.
Obviously tum ek hi type ka khaana toh roz nahi khaoge right? Ussi tarah portfolio ko bhi zyada der same mat rakhna. Regularly apne investment goal ko dhyaan mein rakhte huey, diversify karte rehna.
In case you’ve missed other episodes
EPISODE 1: HIGHS ARE FOR EXITS | EPISODE 2: LOWS ARE FOR AVERAGING
EPISODE 3: VOLATILITY IS FOR SELLING | EPISODE 4: NOT ALL HIGHS ARE FOR EXIT
EPISODE 5: STOCK MARKET LOWS ARE FOR ENTRY | EPISODE 6: SHOULD YOU TAKE LOANS FOR INVESTING?
EPISODE 7: SHOULD YOU TAKE CREDIT CARD LOAN FOR INVESTING? | EPISODE 8: FINANCIAL AWARENESS IS NOT FOR ME
EPISODE 9: SHOULD YOU BORROW MONEY FROM FRIENDS TO INVEST IN THE STOCK MARKET
I’m Archana R. Chettiar, an experienced content creator with
an affinity for writing on personal finance and other financial content. I
love to write on equity investing, retirement, managing money, and more.
