Disadvantages of diversification :
The first and the most important thing is that by diversifying you will be losing an opportunity to make most of your investment. It’s just a matter of chance that one of companies in which you had invested gave a return of 15% and your portfolio return was 12%.Investing in too many securities means you will have to spend a lot of time to study the company, performance of its stocks. Not only this, you will have to spend a lot of time in order to manage the portfolio
The first and the most important thing is that by diversifying you will be losing an opportunity to make most of your investment. It’s just a matter of chance that one of companies in which you had invested gave a return of 15% and your portfolio return was 12%.Investing in too many securities means you will have to spend a lot of time to study the company, performance of its stocks. Not only this, you will have to spend a lot of time in order to manage the portfolio