Secret Swing Trading Strategy

Forums Ask Me Anything which option is better for long term investors, focus or diversification? Reply To: which option is better for long term investors, focus or diversification?

#210804
Nitin Bhatia
Keymaster

    It is a debatable/subjective question and also differs from person to person. It depends on lots of factors i.e. knowledge of stock market, risk appetite, time horizon etc. The lesser nos. of stocks in the portfolio give more returns and vice versa. If we are not to able to make focused portfolio, it is better to opt for Mutual Fund because MF has well diversified portfolio and a professional approach. A focused portfolio has not been more than 7-8 stocks or maximum 10 stocks but it needs lots of confidence and knowledge about stock market and rigorous stock selection process.

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