Reduce Risk via Diversification – in Life and your Investments
- Diversification is the principle of reducing risk by engaging in multiple activities while achieving a goal.
Diversification is the principle of reducing risk by engaging in multiple activities while achieving a goal. For someone on the path of physical fitness and wellness, one needs to follow different exercise routines and practice multiple sports to help your body achieve all round fitness.
Adopting different routines regularly and doing multiple activities like running, swimming and exercises helps in this process. It challenges one to help push harder and achieve peak physical fitness as well as eventually help the individual develop mental peace and a calmer state of mind.
Abhishek Avhad provides the perfect example of diversification as he chose to embrace the path of better living and wellness by taking up different activities for all round physical and mental fitness. A chartered accountant by profession, he started running to kick out his smoking habit. Soon, he found happiness in running but wanted to challenge himself further. That prompted him to take up swimming and cycling as well, and he began the journey of becoming a triathlete.
Participating and excelling at Iron Man Sweden in 2017 was just proof that diversifying his physical fitness regime and building a stronger and healthier version of himself was the right decision. Diversification across formats allowed him to understand his strengths and weaknesses better especially in an event like a triathlon, where he ran across mountains and swam across the sea. He was able to calculate in which leg he might lose time and where he could make up time, thus enabling him to finish the course within the cut-off time.
Mutual Funds also embrace the principle of diversification as they help to invest across asset classes and reduce risks ultimately helping to optimise returns on overall investment portfolio. This holds true in life too as epitomised by Abhishek Avhad who reduced his chances of failure and helped him give his best shot to achieve success.
An investor education and awareness initiative by Franklin Templeton Mutual Fund.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.