Kuvera's video: Passive Investing: The smart way to diversify your portfolio Best of Investor Education

The best of investor education content, . In this fun video by @utimutualfunds know how Passive investing is a smart way to diversify your portfolio Passive investing is the smart way to diversify your portfolio at low cost. Do you remember your grandparents asking you not to keep all your money in one place while traveling to a new city or country? Because scattering your money, or simply diversifying it, is one of the most effective ways to reduce the risk of losing all of it at once. Similarly, when it comes to investments, you need to diversify your portfolio to mitigate various types of risks in order to build long term wealth. This can be achieved by holding different asset classes. However, it may be difficult for many investors to decide where to invest. At the same time, they may want to invest in markets with relatively lesser risk. These investors can look at investing in passive funds. Passive funds can help you to diversify your portfolio across asset classes. They simply invest in widely tracked indices comprising companies or instruments forming part of that particular index. Apart from investing in broad market indices, it also allows investing in sectoral indices. Thus, passive funds offer adequate portfolio diversification, reduce portfolio volatility and risk, and provide a wide range of options across assets. That, too, at low cost. Most common forms of passive investing are exchange trading funds, ETFs index funds, fund of funds, FoFs. Within each type, investors get multiple options to choose from. So if you wish to diversify your portfolio across index constituents and earn indexlike returns at low cost, invest in a passive fund of your choice. Mutual fund investments are subject to market risks. Read all scheme related documents carefully. Stay updated with super cool videos on investing. Subscribe to Kuvera Channel https://bit.ly/3bawMXK Follow the conversations across Kuvera.in on Twitter : https://twitter.com/Kuvera_In Facebook : https://www.facebook.com/kuvera.in/ LinkedIn : https://www.linkedin.com/company/kuvera-in/ YouTube: https://www.youtube.com/@Kuvera Thread: https://www.threads.net/@kuvera.in Disclaimer: These videos are only for educational purposes.