I have read many times that we should not average a stock. Here are few screen shot of MRF and a good mutual fund. Plz look at it and answer my query.
MRF
you should first create a portfolio. don’t put everything in one stock. if you have portfolio already then balance the amount into different sectors. after this you can add stocks in your portfolio on every dip.
In dip should i invest in every 4 stocks of my portfolio.
Suppose i have 4 stocks. Now after every 5% dip should i invest 25% of the invested amount in every 4 stocks. Is that right?
Portfolio are very less volatile as compared to a single stock.
Again why a small mf of 2k crore is ok for averaging a stock that has market cap of 27.5k crore it not?