Regulatory discrimination

Overseas limit for MFs must be reviewed

One of the most basic principles of portfolio management is diversification. It is always advisable to not put the entire corpus in one stock, or one asset class for that matter. Investors thus diversify their portfolios at different levels, depending on investment objectives, the time horizon, exposure to different instruments and assets, and the size of the portfolio. Depending on the investment objectives, diversification also helps generate better returns over time. Aside from different assets, investors also tend to diversify their portfolios in different geographies, depending on the regulatory architecture. Foreign investment worth billions of dollars flow in and out