Some of the advantages of diversifying your portfolio :
By diversifying you will be able to hedge (evade) the risk (systematic and unsystematic).Even though there are fluctuations in the prices of the stocks in the market, you will have fixed returns.Diversification is very helpful for an investor who is looking out for investing in the companies for a long term. The reason is that he will be having a variety of securities in his portfolio and even if one company is going through a lean patch, other securities will be doing well.Diversification of portfolio helps during the worst times of the market, when the market has crashed.
By diversifying you will be able to hedge (evade) the risk (systematic and unsystematic).Even though there are fluctuations in the prices of the stocks in the market, you will have fixed returns.Diversification is very helpful for an investor who is looking out for investing in the companies for a long term. The reason is that he will be having a variety of securities in his portfolio and even if one company is going through a lean patch, other securities will be doing well.Diversification of portfolio helps during the worst times of the market, when the market has crashed.