CNBC-TV18 Investment Guide, a weekly classroom series, helps you with investing guidelines, the rules to follow, the filters to apply and this time the show is focusing on the concept of intelligent diversification.

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Samir Arora, Founder and Fund Manager at Helios Capital Management, discussed what is intelligent diversification -- is a concentrated portfolio approach 'flawed'? Is a diversified approach better than taking concentrated bets? What is ideal diversified portfolio in the present context and the differences or similarities to previous bull phases and what is the biggest risk?

“My topic is that within the context of equity assets, whether you should have 10 odd stocks or more. So my theory is that you should have 30-40 names. Concentration is a bad thing. Diversification became a negative word because of many reasons. Diversification is not a defensive strategy,” he said.

For entire discussion, watch the video…

To watch other videos in this series, click on the CNBC-TV18 Investment Guide tab below.

(Edited by : Bivekananda Biswas)

First Published:Jan 27, 2021 5:34 PM IST