is a key idea to consider when investing. Diversification is the process of
spreading your investment such that your exposure to any asset is limited. It
is often remarked that we should not put all of our eggs in one basket. It is
one technique for an investor to balance the risks and rewards in his
portfolio. Diversification is also important in mitigating market volatility.
Diversification does not always guarantee profit or loss, but it
reduces the amount and intensity of stomach-churning ups and downs.
lessons can be learned from one of the most famous cricketers of all time,
Mahindra Singh Dhoni, the ex-captain of the Indian cricket team and also known
as the captain cool. When it comes to business investing, Captain Cool has
successfully used the lesson of diversification in his life.
has invested in a number of businesses and continues to support them with his
time and money. Here are a few of the businesses he has invested in and built
over the years.
1 A sports franchise
Dhoni is a co-owner of Chennaiyin FC in the Indian Super League (ISL).
was also a co-owner of the Ranchi Rays hockey team, which competed in the
Hockey India League.
2016, MS Dhoni established his lifestyle brand SEVEN. SEVEN, named after his
legendary jersey number, sells clothes and footwear.
3 Rhiti Sports
Sports is a sports marketing and management organization that
handles cricketers such as Bhuvneshwar Kumar, Faf du Plessis, and Mohit
4 Sports Fit World Pvt Ltd
Fit World Pvt Ltd is a private limited company based in India. MS Dhoni's
SportsFit World Pvt Ltd begun looking into the commercial fitness arena.
Dhoni recently invested in Bangalore-based startup Khatabook and became the
app's brand ambassador.
6 Organic Farming
from commercial ventures, MS Dhoni has personally invested time and money in
the development of organic farming in Ranchi. Dhoni has been farming on
approximately 10 acres of land in his 43-acre Ranchi farmhouse. Strawberries,
peas, tomatoes, and cabbages are among the veggies apparently cultivated by
Dhoni in his Ranchi farmhouse.
seen above, MS Dhoni has invested in a variety of enterprises ranging from a
clothing company to a management firm to farming, all of which are in diverse
sectors and industries.
same principle can be learned and implemented whether investing in different
assets or establishing an equity portfolio.
Here are some of the pros and cons of
Reduces the possibility of loss
Controls market volatility.
Opportunities for long-term growth
It eliminates the normal economy's cyclical nature.
Over diversification poses a risk.
The cost of maintenance may be relatively higher.
It complicates the investment process.
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