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Is it sound to invest in a particular sector or one should go for the best possible combination of stocks of different sectors?

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Is it sound to invest in a particular sector or one should go for the best possible combination of stocks of different sectors?

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Ans. It is better to invest in a basket of sectors if you are investing for a long term as it will spread your risk across the sectors with the result that any loss in one sector will be compensated with the profit in the other sector.

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