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The Butterfly Effect: Small Steps to Big Wealth, Thanks to Mutual Funds
As the classic proverb says, ’Don’t put all eggs in one basket’, Investor also must diversify his/her portfolio into different asset classes. Why? Reason is very obvious – to reduce the risk.
If you want to go around the earth and start with 100 metres on first day and double the distance every day, How long do you think it will take?
Calculating return would have been easier, if we had been investing exactly for one year. But that doesn’t happen in practical world. Investment is normally done in staggered manner and each investment is not kept for same period of time.
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