5 min read
Why Diversification Matters
Diversification is refusing to let one company, one sector, or one story decide your entire financial year.
Diversification means spreading capital across holdings that do not all move for the same reason. A single stock can double. It can also go to zero.
A well-constructed fund already diversifies inside its mandate. That is one reason a regulated collective vehicle is more suitable for a first disciplined portfolio than a concentrated personal bet.
Diversification is not the same as owning everything. Too many overlapping products create an illusion of safety and a stack of fees.
The practical test: if one holding failed completely, would the plan still stand? If the answer is no, concentration is too high.
For Cohort 01, the aim is a coherent vehicle — not ten different experiments.