Diversification spreads idiosyncratic risk — one company’s fraud should not sink your retirement if weightings stay sane across dozens of stocks via index funds.
Diworsification happens when you add correlated funds, overlapping themes, and brokerage tips until the portfolio looks busy but behaves like expensive Nifty-plus-noise.
Correlation rises in panics: international diversification helps until global shocks synchronize briefly — still worth it for serial currency and cycle diversification over decades.
Three thoughtful funds can beat twenty random ones. Count effective bets, not Excel rows.
Annual reviews should delete positions you cannot explain in two sentences; if they survive, keep them.
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