{"id":5764,"date":"2021-11-18T17:23:05","date_gmt":"2021-11-18T11:53:05","guid":{"rendered":"https:\/\/www.tickertape.in\/blog\/?p=5764"},"modified":"2022-05-24T10:25:17","modified_gmt":"2022-05-24T04:55:17","slug":"risk-diversification","status":"publish","type":"post","link":"https:\/\/www.tickertape.in\/blog\/risk-diversification\/","title":{"rendered":"What Does Diversification Of Portfolio Mean and The Benefits Of Doing It"},"content":{"rendered":"\n

In recent times, everyone is on board with the idea that the best way to grow wealth is by saving and investing. There are many strategies for investing to maximise wealth generation, and the most frequently used is risk diversification<\/a> of the portfolio. Here\u2019s what it means to diversify risk and why you should do it.<\/p>\n\n\n\n

Have you heard the classic saying, ‘don’t put all your eggs in one basket’? Let’s go with a more relatable example, which is \u2018don’t live on apples alone\u2019. Apples sure have essential vitamins and minerals, but you will get a protein deficiency and other major health problems if you stop eating from other food groups. Similarly, suppose the only investments you have are real estate<\/a> and a PPF account or FDs<\/a>. In that case, you will lose out on the benefits of other assets, besides becoming vulnerable to losses if these assets underperform.<\/p>\n\n\n\n

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