Diversification

Diversification in Depth: Reasons a Portfolio Should Hold More Than 30 Stocks

The "Rule of 30" has long been a favorite among investors, implying that holding 30 different stocks can significantly reduce unsystematic risk in a portfolio. Many investment professionals regard this rule as an investment canon, derived from the idea that the benefits of diversification plateau after a certain point. But, with businesses and markets increasingly interconnected on a global scale, we must ask whether the "rule of 30" is still applicable.

Building a Robust Portfolio: Sector Caps are the Pillars of Diversification!

Diversification, an important investment strategy, manages risk and increases potential returns. Sector caps, which limit exposure to a single industry to balance a portfolio, are critical to this. This blog will discuss the significance of sector caps and their benefits.