Many individuals set foot into the world of entrepreneurship with the aspiration and aim to be a leader in just one industry of work. However, many other rare gems in the world start with acing a particular field and then excel at whatever they touch across sectors and become a serial entrepreneur. It requires consistency and persistence to grow in any work area and to become a professional in the same; one sometimes also needs to put in their blood and sweat for the world to call them successful. One such growing entrepreneur from the field of real estate is a man who believed in himself and today has become an ideator and innovator in the real estate business; he is Miki Dutta, a British entrepreneur, based in London, UK.
Dutta manages the chair of the director at one of the top-most real estate companies of the UK named Bracken Real Estate. Being a real estate investor and stocks/options trader as well, he talks about the importance of diversification of investment.
The leading serial entrepreneur explains that diversification is a technique that helps people to reduce their risks by allotting investments across industries, numerous financial instruments and other categories as well. It is all about making investments in various areas and taking full advantage of the returns through the same. This would each react in a diversified manner for the same event. He explains that people can reach greater financial goals by minimizing the risk through diversification.
In a market scenario that is badly hit by COVID-19, it is essential for people to understand the importance of diversification of investments as putting all money in just one portfolio would mean higher risk. Hence, diversifying in making investments across industries is vital for the reduction in risks.
Dutta goes on to explain that stock investments have gained massive popularity in recent years, where more and more people have understood that equity is also an asset that can give them the opportunities for wealth creation. There are various reasons according to Dutta as to why there is an upward trend in the industry; some of them are:
- It provides them with enough returns: People are aware that they can be protected against inflation and ordinary shares provide them with great returns and growth.
- Investments can be done in smaller amounts: It has become more accessible for people to invest also in smaller amounts in equities through the SIP route of mutual funds.
- It gives them tax earnings: By investing in ordinary shares, people can maintain the rate of returns on investments.
- Gives them the chance to be a global investor: People can get the opportunity to invest in shares of global companies which can open doors for them in terms of profits and make more money.
- They can become a partner in business: By buying the shares of a profitable company and becoming a partner in the firm, people can work towards gaining more profits.
So far, Dutta has also extensively helped distressed businesses by investing in the same across the globe, being an advocate of social entrepreneurship and a renowned venture capitalist.
