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Diversification minimizes risk while maintaining growth potential from "summary" of Diamonds in the Dust by Saurabh Mukherjea,Rakshit Ranjan,Salil Desai
Investing without diversification is akin to putting all your eggs in one basket. Relying on a single asset or sector exposes investors to significant risks. If the chosen area faces a downturn, the entire portfolio suffers. A diversified approach spreads investments across various assets, industries, and geographies, thereby cushioning against volatility. When one sector struggles, others may thrive, balancing out losses with gains. Maintaining growth potential while reducing risk hinges on selecting a mix of investment opportunities. Growth stocks, bonds, and alternative assets can coexist, catering to an investor's appetite for risk. Each asset class responds differently to market c...
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