Common Misconceptions on Diversification
Some of the common myths on diversification are:
1. Diversification Will Automatically Result in Returns: As much as diversification can reduce risk, it never guarantees profits. Market conditions may still result in losses.
2. Diversification is Too Much: Too Many Funds Can Bring Over-Diversification brings forth the loss of the positive effects of diversification benefits. The performance will not be hard to track and manage investment.
3. Diversification in One: Such investors feel that an investment in one diversified fund may be good. But diversification among proper asset classes and sectors mitigates better risks.

Common Misconceptions on Diversification
Some of the common myths on diversification are