Risk Management in Investments
According to me these are the ways in which one should manage their risks while making their investments 1. Invest small amounts to experiment in any new asset class to begin with 2. Do your research and be updated with the current market position 3. Take expert advice apart from building your own expertise 4. Try adopting the method of time diversification by investing small amounts of money in the same asset class in different time periods 5. Never put all your money in one company or asset class. Try to diversify and incorporate all the asset classes into your portfolio to manage risks: a. One should do intra-Asset class diversification wherein you can invest in stock but in large cap, mid cap and small cap companies b. Also one should inter-Asset Class diversification wherein you can invest in F.D, commodities like Gold/Silver, Debt funds, Equity funds, Properties, etc. And of course, as always, I like to check with AI about their thoughts a...