With a portfolio diversification approach, you can ensure peace of mind. Here’s how. When you distribute your money across mutual funds and asset classes, it lowers your risk of losses. Markets act in different ways in different places at different times. So, it brings a balance in your investment; if some of your investments are facing the downside, others may see the sunny side.

Following market sentiments without analysing them is a big mistake committed by many individual investors. It is human psychology to follow the herd and do what others are doing, especially when you can see them tasting success dur to the choices they made. But by the time you try the same and i...