In our client interactions, we often come across two common situations:
- Individuals with large exposure to their own companies through Employee Stock Options (ESOPs).
- Individuals who build concentrated bets on certain sectors or strategies due to their knowledge or biases.
Our perspective is simple:
- Active Portfolio (Business/profession): If it’s one’s own business/profession, where the individual is in control, concentrated exposure can make sense – because the individual is driving the outcome.
- Passive Portfolio (Investments): Here, restrict exposure. Ensure that even if the particular holding/exposure were to go to zero, it won’t derail your overall financial security.
The recent episode where an announcement by US President Donald Trump negatively impacted several IT-oriented companies is a timely reminder of such risks.
Diversification may not necessarily make you extraordinarily rich—but it will certainly help you sleep well. At Naveen Rego Capital, our philosophy has always been to prioritize wealth protection through proper diversification.
As Nobel laureate Harry Markowitz wisely said:
“Diversification is the only free lunch.”
Happy Diversification!
Naveen Julian Rego – CFP®
MD & Principal Officer
Date: 22-09-2025
Note and disclaimers:
- Investment in the securities market is subject to market risks. Read all the related documents carefully before investing.
- Registration granted by SEBI, membership of BSE and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.
- Financial products recommended by us which are under the jurisdiction of other regulators are beyond the scope of SEBI’s grievance mechanism.