My viewpoint on diversification

If you have been investing for a while or either reading up financial journals or books regularly, you will realise that it is a prevalent belief among people that diversification is essential to ensure above average returns and also to minimise risk. There is a saying that one should put the eggs in many baskets but I chose to believe that one should just put the eggs in a basket and watch it carefully. This is because a portfoilio which is heavily diversified will never give u an above average return whereby you may have better gains by just putting your funds into an ETF.

In my opinion, to achieve an above average return, one should remove their own obstacle of allocating a huge portion of his fund to a specific stock but in order to accomplish this, you will need a strategy and a system that suits you well else it may result a huge loss!

In my case, I realized two of my stocks from a portfolio of six and planning to top up the remaining stocks when a good opportunity aries. Pardon me but I will like to reiterate again because I think this is crucial to one's investment sucess. Over diversifcation don't always minimise risk but at times, it may also magnify your lossings so simply allocate your fund in a ETF if your dont feel comfortable to have a concentrated portfolio!