Don't put all your eggs in one basketGopal was working as an engineer in a private company and was having his own small flat in the city. His parents died a few years ago. He had inherited some property in a small town where his parents had lived.
Due to boom in property prices he sold the town property and was thinking to invest this money in share market to earn handsome returns. He wanted to earn quick returns by investing in some top company but not very sure in which he should invest.
Gopal remembered that his schoolmate Ranbir was working in a financial company in the same city and it would be better if he takes his advice. Gopal called him and told about his investment plans. Ranbir told to Gopal that investment is to be done with great prudence and not to be taken in a casual way. He offered Gopal a detailed discussion on this and invited him to his house.
Anyway, Gopal otherwise also wanted to meet him so he took this opportunity and planned to go to meet Ranbir on Sunday.
On Sunday afternoon, Gopal reached at Ranbir's house and Ranbir welcomed him very warmly and then they sat in the drawing room. After some general chit-chat Ranbir came to the point.
He told Gopal that though some shares are doing good in the equity market but it is not prudent to invest all the money in that as equity is a high risk area. He also suggested Gopal to divide his money in 4-5 parts and then invest each part in separate avenues like Bank fixed deposit, Mutual Funds,
Sukanya Yojna, Pension schemes/ Annuity schemes, Equity market, Non taxable bonds etc. He explained that by doing this way the risk will be reduced and also adequate return on investment will be realised.
Gopal had some doubts which he raised and Ranbir explained the things in more details and Gopal finally got the feel of the things for making prudent investments.
In the end, Ranbir said conclusively, "Gopal, don't put all your eggs in one basket".
Gopal was by now understood the things and thanked Ranbir for his valuable advice. He also invited Ranbir to visit his house sometimes.
While returning to his house Gopal was thinking how to distribute his investment in those different options now available to him. After talking to Ranbir, he was now feeling confident to earn a safe and secure return on his investments.