Mutual Funds
If our portfolio has stocks of Reliance, HDFC, Wipro, Tata etc., we are basically betting on Ambani, Aditya Puri (retired, but still), Azim Premji, and Murthy, respectively. Our risk is evenly distributed and you can very easily guess why. All of these companies operate in different sectors and are mostly, not influenced by one another.
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about 2 years ago