Welcome to Mutual Fund 101, powered by UTI Swatantra, an investor education initiative by UTI.
Warren Buffett is one of the most successful investors in the world. He believes that investors must have a diversified investment portfolio.When he says do not put all your eggs in one basket, he means do not put all your hard-earned money in one single investment. If the basket falls, all your eggs will break at once. Thus, you must put your money in different investments. This is called risk diversification.So, the one way to balance risk and reward in your investment portfolio is to diversify your assets.