Don't put all your eggs in one basket
Everyone said that don't invest in one investment vehicle or in one type shares there should be a well distribution of money in investment. Now question arise is how risk reduce in portfolio.
Let's Say Mr. A and Mr. B two best friends when teacher get out one friend another one also goes out with him now both missed the class lecture. In this example both have positive relation.
Just like in share if you invested in one type of share or one investment vehicle than your portfolio will more risky because you invested all money in two shares but with positive relation.
Now let's say Mr. A and Mr. B are not a good friends but they know each other if teacher get out one another will take class and he will teach him after class. Just like in share and gold if we invested in both than, if shares price are down than gold will be up which will reduce your risk.
Let's Say Mr. A and Mr. B two best friends when teacher get out one friend another one also goes out with him now both missed the class lecture. In this example both have positive relation.
Just like in share if you invested in one type of share or one investment vehicle than your portfolio will more risky because you invested all money in two shares but with positive relation.
Now let's say Mr. A and Mr. B are not a good friends but they know each other if teacher get out one another will take class and he will teach him after class. Just like in share and gold if we invested in both than, if shares price are down than gold will be up which will reduce your risk.
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