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Diversification
To make a good investment decision is never too easy. Avoiding risks means losing out all potential gains which is against investment ethics. In an investment, we can neither hold the insurance policy against the market risk nor take any safety measures beforehand to reduce severity of investment risk.
A key to risk management is by spreading the risk of investment in different asset classes of businesses and financial instruments within our investment portfolio. In other words, do not put all the eggs in one basket, that is, we believe in risk management through diversification of the investment portfolio.
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