Diversify your risks, say fund managers. It reduces risk by allocating investments among various financial instruments and in turn helps in optimising returns. Although this is no guarantee against losses, it does minimise the risk associated with the concentration of a portfolio. Do fund managers practice what they preach so vociferously? Of the 156 funds, portfolios for which are available...

At the time of writing this piece, the Sensex stands at 20,687. From as early as mid-October 2007 to November 2007, we have been warning in MoneyLIFE that a temporary peak in the indices had been reached and that investors should be bracing for a major correction. We had suggested a downside target of 17,000-17,500. This warning had been tempered with the reassurance that the primary...