The most common metaphor for diversification is not having all your eggs in one basket. The portfolio theory definition of it is slightly different.
Sanjiv SinghalFounder & Chief Operating Officer of Scripbox, Sanjiv has worked at the intersection of finance & technology for over 25 years - having held leadership positions at Citibank, ABN AMRO Bank & Kotak Mahindra. Sanjiv set up Scripbox along with his friends Ashok, Atul & Ravi with the aim of simplifying personal finance for everyone. You can also follow Sanjiv on twitter @sanjivsinghal.
Over the past 20 years or so, we have seen that the top equity mutual funds have consistently done better than the market benchmarks. Better managed diversified equity funds have delivered an annualised return that is about 3-4% better than the Nifty. This gets reflected in the return delivered by Scripbox portfolio recommendations.