JainMatrix Investments shares Pitfalls – Rule #1 in the video below
In my Research Analyst advisory practice, I often found that investors can fall in love with a particular stock, and overinvest in it, rather than taking a basket or portfolio approach. This exposes investors to this risk.
In the equity markets, there is always a small probability that any one company can be negatively affected by an unexpected event. It could be a business cycle downturn. It could be a fire in a factory. It could be raising of interest rates by RBI. Or a random or unpredictable event. Some examples of sudden falls can include Yes Bank, IL&FS Ltd., Vakrangee Ltd, Future Retail, etc. These companies suffered a sudden fall in recent years, and surprised many investors, sometimes after many years of doing very well.
The hedge against this for an investor is, to invest in a basket or portfolio of stocks at a time.
Over a period of time this basket or portfolio may have widely different results in terms of individual performances. Some shares may appreciate very well, while others stay flat or worse. But at least the single stock investment risk is not there.
If chosen well, this investment in a group of stocks can be a great step in your wealth building process.
Here’s where JainMatrix Investments services can help you. To find out more reach out to us on
Or explore on this website
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Regards, Punit Jain
This document has been prepared by JainMatrix Investments Bangalore (JM), and is meant for use by the recipient only as information and is not for circulation. This document is not to be reported or copied or made available to others without prior permission of JM. It should not be considered or taken as an offer to sell or a solicitation to buy or sell any security. The information contained in this report has been obtained from sources that are considered to be reliable. However, JM has not independently verified the accuracy or completeness of the same. This is a marketing collateral. The securities quoted here are for illustration only and are not recommendatory. Neither JM nor any of its affiliates, its directors or its employees accepts any responsibility of whatsoever nature for the information, statements and opinion given, made available or expressed herein or for any omission therein. Recipients of this report should be aware that past performance is not necessarily a guide to future performance and value of investments can go down as well. The suitability or otherwise of any investments will depend upon the recipient’s particular circumstances and, in case of doubt, advice should be sought from an Investment Advisor. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Punit Jain is a registered Research Analyst under SEBI (Research Analysts) Regulations, 2014. Registration granted by SEBI, and certification from NISM in no way guarantee performance of the RA or provide any assurance of returns to investors. JM has been publishing equity research reports since Nov 2012. Any questions should be directed to the director of JainMatrix Investments at firstname.lastname@example.org. Name of the RA as registered with SEBI – Punit Jain, SEBI Registration No. INH200002747.