Diversification is recommended whenever you invest, especially when it comes to mutual funds (MF). At its very core, diversification entails investing in more than one instrument. Let’s take a look at the various ways in which one can diversify in MFs.
Across schemes
When you start to shortlist funds, don’t put your money in just one basket. Spread investments in at least two schemes to begin with, even if you start out by investing more than about Rs.5,000.
