{"id":25629990,"date":"2025-11-13T18:12:10","date_gmt":"2025-11-13T12:42:10","guid":{"rendered":"https:\/\/entri.app\/blog\/?p=25629990"},"modified":"2025-11-13T18:12:10","modified_gmt":"2025-11-13T12:42:10","slug":"overdiversification-of-portfolio","status":"publish","type":"post","link":"https:\/\/entri.app\/blog\/overdiversification-of-portfolio\/","title":{"rendered":"What Is Overdiversification of Portfolio? Why Should You Avoid It?"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_79_2 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69d51736549fa\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69d51736549fa\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/entri.app\/blog\/overdiversification-of-portfolio\/#Introduction\" >Introduction<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/entri.app\/blog\/overdiversification-of-portfolio\/#Understanding_the_Concept_of_Overdiversification_of_Portfolio\" >Understanding the Concept of Overdiversification of Portfolio<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/entri.app\/blog\/overdiversification-of-portfolio\/#Why_Does_Overdiversification_of_Portfolio_Happen_in_India\" >Why Does Overdiversification of Portfolio Happen in India?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/entri.app\/blog\/overdiversification-of-portfolio\/#Why_Should_You_Avoid_Overdiversification_of_a_Portfolio\" >Why Should You Avoid Overdiversification of a Portfolio<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/entri.app\/blog\/overdiversification-of-portfolio\/#How_to_Recognise_When_Your_Portfolio_Is_Overdiversified\" >How to Recognise When Your Portfolio Is Overdiversified<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/entri.app\/blog\/overdiversification-of-portfolio\/#Smart_Strategies_to_Avoid_Overdiversification_of_Portfolio\" >Smart Strategies to Avoid Overdiversification of Portfolio<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/entri.app\/blog\/overdiversification-of-portfolio\/#Key_Takeaways\" >Key Takeaways<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Introduction\"><\/span><b>Introduction<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">In India\u2019s dynamic investment landscape, more is not always better. While spreading risk matters, there\u2019s a tipping point where diversification becomes counterproductive. This blog post unpacks the idea of <\/span><b>overdiversification of portfolio<\/b><span style=\"font-weight: 400;\">, explains why it\u2019s a hidden risk for Indian investors and shows how to build a portfolio that truly aligns with your goals.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Understanding_the_Concept_of_Overdiversification_of_Portfolio\"><\/span><b>Understanding the Concept of Overdiversification of Portfolio<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-25629994 aligncenter\" src=\"https:\/\/entri.app\/blog\/wp-content\/uploads\/2025\/11\/10782689_19197237-e1763037197765.webp\" alt=\"Overdiversification of Portfolio\" width=\"372\" height=\"311\" srcset=\"https:\/\/entri.app\/blog\/wp-content\/uploads\/2025\/11\/10782689_19197237-e1763037197765.webp 1096w, https:\/\/entri.app\/blog\/wp-content\/uploads\/2025\/11\/10782689_19197237-e1763037197765-300x250.webp 300w, https:\/\/entri.app\/blog\/wp-content\/uploads\/2025\/11\/10782689_19197237-e1763037197765-1024x855.webp 1024w, https:\/\/entri.app\/blog\/wp-content\/uploads\/2025\/11\/10782689_19197237-e1763037197765-768x641.webp 768w, https:\/\/entri.app\/blog\/wp-content\/uploads\/2025\/11\/10782689_19197237-e1763037197765-150x125.webp 150w, https:\/\/entri.app\/blog\/wp-content\/uploads\/2025\/11\/10782689_19197237-e1763037197765-750x626.webp 750w\" sizes=\"auto, (max-width: 372px) 100vw, 372px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">Diversification is a core investment concept: allocating money across different assets, sectors, geographies, and asset classes to reduce unsystematic risk. However, when you diversify excessively, that is, investing in too many holdings or overlapping funds that each one has a negligible impact, you face the risk of <\/span><b>overdiversification of portfolio<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">To keep it simple, you dilute your returns, complicate management, and may end up with a portfolio that behaves like a replica of the market index rather than one built for your aims.<\/span> <span style=\"font-weight: 400;\">For Indian investors, this means that simply investing in a large number of mutual funds, stocks, or asset-classes does not automatically yield benefit, especially if many holdings overlap in sector, stock or strategy.<\/span><\/p>\n<p style=\"text-align: center;\"><strong><a href=\"https:\/\/entri.app\/course\/stock-market-course\/\" target=\"_blank\" rel=\"noopener\">Learn Stock Marketing with a Share Trading Expert! Explore Here!<\/a><\/strong><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Why_Does_Overdiversification_of_Portfolio_Happen_in_India\"><\/span><b>Why Does Overdiversification of Portfolio Happen in India?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-25629995 aligncenter\" src=\"https:\/\/entri.app\/blog\/wp-content\/uploads\/2025\/11\/149981.webp\" alt=\"Overdiversification of Portfolio\" width=\"381\" height=\"265\" srcset=\"https:\/\/entri.app\/blog\/wp-content\/uploads\/2025\/11\/149981.webp 1000w, https:\/\/entri.app\/blog\/wp-content\/uploads\/2025\/11\/149981-300x209.webp 300w, https:\/\/entri.app\/blog\/wp-content\/uploads\/2025\/11\/149981-768x535.webp 768w, https:\/\/entri.app\/blog\/wp-content\/uploads\/2025\/11\/149981-150x104.webp 150w, https:\/\/entri.app\/blog\/wp-content\/uploads\/2025\/11\/149981-750x522.webp 750w\" sizes=\"auto, (max-width: 381px) 100vw, 381px\" \/><\/span><\/p>\n<h3><b>1. Over\u2010enthusiasm and Fear of Missing Out<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Many first-time or retail investors in India build portfolios by chasing \u2018variety\u2019, buying multiple mutual funds, stocks, gold, and international exposure, thinking more means safer. But that\u2019s a key cause of overdiversification of portfolio.<\/span><\/p>\n<h3><b>2. Multiple Similar Funds<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Investors often hold 5-10 equity mutual funds from different AMCs, but many of these funds invest in the same top stocks (e.g., the large-cap names in India). That creates overlap and little real diversification.<\/span><\/p>\n<h3><b>3. Too Many Asset Classes without Strategy<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">In trying to cover everything, equity, debt, mix, gold, real estate, international- investors may lose focus on their core goal, leading to a portfolio that is hard to manage.<\/span><\/p>\n<h3><b>4. Lack of Periodic Review<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">With a large number of holdings, tracking performance and rebalancing become challenging. Over time, drift and complexity lead to overdiversification of portfolio.<\/span><\/p>\n<h3><b>5. Indian Mutual Fund Market Particularities<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">In the Indian mutual fund context, large-cap funds often hold the same stocks; sector funds overlap; and adding more funds may simply duplicate underlying holdings rather than broaden exposure.<\/span><\/p>\n<div class=\"lead-gen-block\"><a href=\"https:\/\/entri.app\/blog\/wp-content\/uploads\/2023\/03\/Stock-Market-360_Pdf-1.pdf\" data-url=\"https:\/\/entri.app\/blog\/wp-content\/uploads\/2023\/03\/Stock-Market-360_Pdf-1.pdf\" class=\"lead-pdf-download\" data-id=\"25556854\">\n<p style=\"text-align: center;\"><button class=\"btn btn-default\">free download Stock market course roadmap<\/button><\/p>\n<\/a><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Why_Should_You_Avoid_Overdiversification_of_a_Portfolio\"><\/span><b>Why Should You Avoid Overdiversification of a Portfolio<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-25629996 aligncenter\" src=\"https:\/\/entri.app\/blog\/wp-content\/uploads\/2025\/11\/46713.webp\" alt=\"Avoid Overdiversification of a Portfolio\" width=\"387\" height=\"267\" srcset=\"https:\/\/entri.app\/blog\/wp-content\/uploads\/2025\/11\/46713.webp 1000w, https:\/\/entri.app\/blog\/wp-content\/uploads\/2025\/11\/46713-300x207.webp 300w, https:\/\/entri.app\/blog\/wp-content\/uploads\/2025\/11\/46713-768x531.webp 768w, https:\/\/entri.app\/blog\/wp-content\/uploads\/2025\/11\/46713-150x104.webp 150w, https:\/\/entri.app\/blog\/wp-content\/uploads\/2025\/11\/46713-750x518.webp 750w\" sizes=\"auto, (max-width: 387px) 100vw, 387px\" \/><\/p>\n<h3><b>Dilution of Potential Returns<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">When you own too many investments, each holding becomes too small to make a real difference if it performs well. The upside potential is averaged out across many average performers.<\/span><\/p>\n<h3><b>Hidden Overlap and Illusion of Diversification<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">You might feel diversified, but if many holdings correlate (e.g., the same large-cap stocks across funds), you are exposed to similar risks. Your portfolio then fails to deliver the benefit of true diversification.<\/span><\/p>\n<h3><b>Increased Complexity and Higher Costs<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">More holdings mean more difficulty in tracking, more fees (mutual fund expense ratios, transactional costs) and more time spent on analysing. For Indian investors this can be a drag on net returns.<\/span><\/p>\n<h3><b>Behavioural and Management Risks<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">With a large, unwieldy portfolio, rebalancing appropriately becomes harder. Drift in allocations may increase risk unintentionally. Also, decision-making may become less focused.<\/span><\/p>\n<h3><b>Portfolio Becomes \u201cIndex-like\u201d and Loses Edge<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">When you own so many stocks or funds that your portfolio effectively mirrors the broader market index, you are paying for active management (if applicable) but getting index returns. That\u2019s one symptom of overdiversification of portfolio.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"How_to_Recognise_When_Your_Portfolio_Is_Overdiversified\"><\/span><b>How to Recognise When Your Portfolio Is Overdiversified<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-25629997 aligncenter\" src=\"https:\/\/entri.app\/blog\/wp-content\/uploads\/2025\/11\/2324.webp\" alt=\"What Is Overdiversification of Portfolio? Why Should You Avoid It?\" width=\"444\" height=\"250\" srcset=\"https:\/\/entri.app\/blog\/wp-content\/uploads\/2025\/11\/2324.webp 1000w, https:\/\/entri.app\/blog\/wp-content\/uploads\/2025\/11\/2324-300x169.webp 300w, https:\/\/entri.app\/blog\/wp-content\/uploads\/2025\/11\/2324-768x432.webp 768w, https:\/\/entri.app\/blog\/wp-content\/uploads\/2025\/11\/2324-150x84.webp 150w, https:\/\/entri.app\/blog\/wp-content\/uploads\/2025\/11\/2324-750x422.webp 750w\" sizes=\"auto, (max-width: 444px) 100vw, 444px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">Here are practical signals Indian investors can look for:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">You hold more than, say, 10-15 equity mutual funds (plus debt, etc) and cannot clearly articulate how each fits.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">You see the same top 10 stocks repeated across multiple funds in your portfolio. Tools show high overlap.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Your returns are mediocre and you feel your portfolio is \u201cbusy but flat\u201d. For example, an article noted that one investor held 10 equity funds + 7 debt funds + others but still got average results.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">You spend a lot of time trying to keep track of many holdings and feel the portfolio is complex to manage.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">You don\u2019t feel any individual holding has meaningful weight to move the needle.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">You cannot clearly define your asset allocation, risk budget, or goal-linking for each holding.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Smart_Strategies_to_Avoid_Overdiversification_of_Portfolio\"><\/span><b>Smart Strategies to Avoid Overdiversification of Portfolio<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><b>Clarify Your Investment Goals, Time Horizon &amp; Risk Appetite<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Before adding many holdings, ask: \u201cWhat am I investing for? How long do I have? What risk can I tolerate?\u201d A clear framework helps decide how many holdings make sense.<\/span><\/p>\n<h3><b>Adopt a Structured Asset\u2010Allocation Framework<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">In India, this means allocating across asset classes (equity, debt, gold, maybe international), and then within equity across styles (large-cap, mid-cap, flexi-cap) rather than buying many funds in the same category.<\/span><\/p>\n<h3><b>Limit Number of Funds \/ Holdings with Purpose<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Rather than owning many funds, go for a smaller number of well-researched ones that cover distinct strategies. For example: one large-cap equity fund, one mid-cap, one debt, one gold, one international. References suggest that more than 3-4 equity funds may be unnecessary.<\/span><\/p>\n<h3><b>Check for Underlying Overlap<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Use fund fact-sheets and overlap\u2010tools to see whether multiple funds hold the same stocks. If overlap is 40-50% or more, you might be overdiversified.<\/span><\/p>\n<h3><b>Regular Portfolio Review and Rebalancing<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">At least once in a year, review your holdings: Are they still aligned with your goals? Are allocations drifting? Are any small and under-performing holdings dragging you? If yes, simplify or exit.<\/span><\/p>\n<h3><b>Focus on Quality and Conviction<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Better to hold fewer high conviction holdings\/exposures than many \u201cweak\u201d ones simply for the sake of variety. In India, that might translate to carefully picking sectors or funds that add value rather than selecting many for \u201cjust in case\u201d.<\/span><\/p>\n<h3><b>Make Costs Count<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Every additional fund or stock adds costs (time, fees, taxes). If the marginal benefit of adding a holding is low, don\u2019t add it. This mindset helps avoid overdiversification of portfolio.<\/span><\/p>\n<h3><b>Maintain Simplicity<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">A portfolio that you understand and can manage easily is better than one with many overlapping layers. For most Indian retail investors, a simpler, goal-linked and reviewed portfolio works well.<\/span><\/p>\n<div class=\"lead-gen-block\"><a href=\"https:\/\/entri.app\/blog\/wp-content\/uploads\/2023\/03\/Stock-Market-360_Pdf-1.pdf\" data-url=\"https:\/\/entri.app\/blog\/wp-content\/uploads\/2023\/03\/Stock-Market-360_Pdf-1.pdf\" class=\"lead-pdf-download\" data-id=\"25556854\">\n<p style=\"text-align: center;\"><button class=\"btn btn-default\">free download Stock market course roadmap<\/button><\/p>\n<\/a><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Key_Takeaways\"><\/span><b>Key Takeaways<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Overdiversification of portfolio<\/b><span style=\"font-weight: 400;\"> happens when the number or type of holdings grows beyond what adds incremental benefit and instead dilutes returns, increases cost and complexity.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">In the Indian investment context it often arises through holding many mutual funds or asset classes without checking overlap or strategic fit.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The main risks of overdiversification of portfolio are dilution of returns, hidden overlapping risk, increased complexity, and losing alignment with investment goals.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Recognise the warning signs: too many holdings, repeated stocks across funds, average returns, tracking difficulties.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">To avoid it: set clear goals; structure allocation; pick fewer, distinct funds\/holdings; check overlap; review periodically; focus on conviction and simplicity.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Simplicity, clarity and strategic focus often beat chasing \u201cmany\u201d exposures. Let diversification be purposeful, not passive.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Ultimately, you don\u2019t diversify to diversify. You diversify to <\/span><b>improve risk-adjusted outcomes<\/b><span style=\"font-weight: 400;\">. Excess doesn\u2019t help. As one commentary noted: \u201cDiversification is like ice-cream. It\u2019s good, but only in moderation.\u201d<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/li>\n<\/ul>\n<table class=\"table\">\n<tbody>\n<tr>\n<td style=\"text-align: center;\" colspan=\"2\" rowspan=\"1\" data-sheets-value=\"{&quot;1&quot;:2,&quot;2&quot;:&quot;Related Links &quot;}\"><strong>Related Links<\/strong><\/td>\n<\/tr>\n<tr>\n<td><strong><a href=\"https:\/\/entri.app\/blog\/easy-ways-to-start-diversifying-your-investment-portfolio\/\" target=\"_blank\" rel=\"noopener\">5 Easy Ways to Start Diversifying Your Investment Portfolio<\/a><\/strong><\/td>\n<td><strong><a href=\"https:\/\/entri.app\/blog\/best-mutual-fund-apps-to-invest\/\" target=\"_blank\" rel=\"noopener noreferrer\">Best Mutual Fund Apps for Investment in India<\/a><\/strong><\/td>\n<\/tr>\n<tr>\n<td><strong><a href=\"https:\/\/entri.app\/blog\/entri-finacademy-sebi-compliant\/\" target=\"_blank\" rel=\"noopener noreferrer\">Entri Finacademy is Now Monitored by an SEBI-registered advisor!<\/a><\/strong><\/td>\n<td><strong><a href=\"https:\/\/entri.app\/blog\/mutual-funds\/\" target=\"_blank\" rel=\"noopener\">What is a Mutual Fund and How Does it Work? (Complete Guide)<\/a><\/strong><\/td>\n<\/tr>\n<tr>\n<td><strong><a href=\"https:\/\/entri.app\/blog\/is-silver-a-good-investment\/\" target=\"_blank\" rel=\"noopener\">Is Silver a Good Investment?<\/a><\/strong><\/td>\n<td><strong><a href=\"https:\/\/entri.app\/blog\/ultimate-guide-to-personal-finance-in-india\/\" target=\"_blank\" rel=\"noopener\">The Ultimate Guide to Personal Finance in India<\/a><\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<div class=\"alert alert-warning\"><strong>Disclaimer:<\/strong>\u00a0The information provided in this article is for general informational purposes only and is not intended as investment advice, financial guidance, or an offer or solicitation to buy or sell any securities. Readers should conduct their own research or consult a qualified financial advisor before making any investment decisions. The author(s) and the publisher disclaim any liability for any loss or damage arising directly or indirectly from the use of or reliance on the information provided herein.<\/div>\n<div><div class=\"modal\" id=\"modal25556854\"><div class=\"modal-content\"><span class=\"close-button\">&times;<\/span>\n\n<div class=\"wpcf7 no-js\" id=\"wpcf7-f25556854-o1\" lang=\"en-US\" dir=\"ltr\" data-wpcf7-id=\"25556854\">\n<div class=\"screen-reader-response\"><p role=\"status\" aria-live=\"polite\" aria-atomic=\"true\"><\/p> <ul><\/ul><\/div>\n<form action=\"\/blog\/wp-json\/wp\/v2\/posts\/25629990#wpcf7-f25556854-o1\" method=\"post\" class=\"wpcf7-form init\" aria-label=\"Contact form\" novalidate=\"novalidate\" data-status=\"init\">\n<fieldset class=\"hidden-fields-container\"><input type=\"hidden\" name=\"_wpcf7\" value=\"25556854\" \/><input type=\"hidden\" name=\"_wpcf7_version\" value=\"6.1.4\" \/><input type=\"hidden\" name=\"_wpcf7_locale\" value=\"en_US\" \/><input type=\"hidden\" name=\"_wpcf7_unit_tag\" value=\"wpcf7-f25556854-o1\" \/><input type=\"hidden\" name=\"_wpcf7_container_post\" value=\"0\" \/><input type=\"hidden\" name=\"_wpcf7_posted_data_hash\" value=\"\" \/><input type=\"hidden\" name=\"_wpcf7cf_hidden_group_fields\" value=\"[]\" \/><input type=\"hidden\" name=\"_wpcf7cf_hidden_groups\" value=\"[]\" \/><input type=\"hidden\" name=\"_wpcf7cf_visible_groups\" value=\"[]\" \/><input type=\"hidden\" name=\"_wpcf7cf_repeaters\" value=\"[]\" \/><input type=\"hidden\" name=\"_wpcf7cf_steps\" value=\"{}\" \/><input type=\"hidden\" name=\"_wpcf7cf_options\" value=\"{&quot;form_id&quot;:25556854,&quot;conditions&quot;:[{&quot;then_field&quot;:&quot;group-coding&quot;,&quot;and_rules&quot;:[{&quot;if_field&quot;:&quot;course&quot;,&quot;operator&quot;:&quot;equals&quot;,&quot;if_value&quot;:&quot;Coding&quot;}]},{&quot;then_field&quot;:&quot;group-accounting&quot;,&quot;and_rules&quot;:[{&quot;if_field&quot;:&quot;course&quot;,&quot;operator&quot;:&quot;equals&quot;,&quot;if_value&quot;:&quot;Commerce&quot;}]}],&quot;settings&quot;:{&quot;animation&quot;:&quot;yes&quot;,&quot;animation_intime&quot;:200,&quot;animation_outtime&quot;:200,&quot;conditions_ui&quot;:&quot;normal&quot;,&quot;notice_dismissed&quot;:false,&quot;notice_dismissed_update-cf7-5.9.8&quot;:true,&quot;notice_dismissed_update-cf7-6.1.1&quot;:true}}\" \/>\n<\/fieldset>\n<p><span class=\"wpcf7-form-control-wrap\" data-name=\"full_name\"><input size=\"40\" maxlength=\"400\" class=\"wpcf7-form-control wpcf7-text wpcf7-validates-as-required\" aria-required=\"true\" aria-invalid=\"false\" placeholder=\"Name\" value=\"\" type=\"text\" name=\"full_name\" \/><\/span><br \/>\n<span class=\"wpcf7-form-control-wrap\" data-name=\"phone\"><input size=\"40\" maxlength=\"400\" class=\"wpcf7-form-control wpcf7-tel wpcf7-validates-as-required wpcf7-text wpcf7-validates-as-tel\" aria-required=\"true\" aria-invalid=\"false\" placeholder=\"Phone\" value=\"\" type=\"tel\" name=\"phone\" \/><\/span><br \/>\n<span class=\"wpcf7-form-control-wrap\" data-name=\"email_id\"><input size=\"40\" maxlength=\"400\" class=\"wpcf7-form-control wpcf7-email wpcf7-text wpcf7-validates-as-email\" aria-invalid=\"false\" placeholder=\"Email\" value=\"\" type=\"email\" name=\"email_id\" \/><\/span><br \/>\n<span class=\"wpcf7-form-control-wrap\" data-name=\"language\"><select class=\"wpcf7-form-control wpcf7-select wpcf7-validates-as-required\" aria-required=\"true\" aria-invalid=\"false\" name=\"language\"><option value=\"\">Language<\/option><option value=\"Malayalam\">Malayalam<\/option><option value=\"Tamil\">Tamil<\/option><option value=\"Telugu\">Telugu<\/option><option value=\"Kannada\">Kannada<\/option><option value=\"Hindi\">Hindi<\/option><\/select><\/span><br \/>\n<span class=\"wpcf7-form-control-wrap\" data-name=\"course\"><select class=\"wpcf7-form-control wpcf7-select wpcf7-validates-as-required course-field-select\" aria-required=\"true\" aria-invalid=\"false\" name=\"course\"><option value=\"\">Upskill in<\/option><option value=\"Stock Market Course\">Stock Market Course<\/option><option value=\"Mutual Funds\">Mutual Funds<\/option><option value=\"Forex Trading\">Forex Trading<\/option><option value=\"Coding\">Coding<\/option><option value=\"Commerce\">Commerce<\/option><option value=\"Spoken English\">Spoken English<\/option><option value=\"German Language\">German Language<\/option><option value=\"Montessori Teacher Training\">Montessori Teacher Training<\/option><option value=\"IELTS\">IELTS<\/option><option value=\"OET\">OET<\/option><option value=\"MEP\">MEP<\/option><option value=\"Robotics &amp; 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While spreading risk matters, there\u2019s a tipping point where diversification becomes counterproductive. This blog post unpacks the idea of overdiversification of portfolio, explains why it\u2019s a hidden risk for Indian investors and shows how to build a portfolio that truly aligns with your goals. [&hellip;]<\/p>\n","protected":false},"author":137,"featured_media":25629993,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[802,1867],"tags":[],"class_list":["post-25629990","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-articles","category-stock-marketing"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>What Is Overdiversification of Portfolio? 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