 Here we are going to discuss a very key point, I've kept it separate from other modules because it is of a immense important element. Here it is called diversification. That's kind of backbone of financial risk management that is to learn about diversification. When I say diversify, that I mean to spread your investment. Spreadware that if you are investing in stock rather than investing in one, it is better to invest in two. If you're investing in two, it's better to invest in five. The more the number of scripts, the more diversified your portfolio. And imperial studies have identified that if you reach a number of 30 stocks, that can be referred to as a well diversified stock portfolio. Which doesn't mean we can only stay till 30, it can go to any number, but 30 is a fairly decent number to get the desired level of diversification. But if you have seen this point, I have not discussed anything other than shares. So that means it's still risky to a one particular category. We call it asset class. So we have spread into many shares, but the asset class is same, that is equity. So another better version could be if we spread it among different asset classes. When I say asset class, it is a categorization of financial instruments based on their risks and their dynamics and their properties. For example, if I talk about shares, stocks, what would be the better diversification? If I put some money in shares, I put some money in bonds. Rather than taking one share or one bond, I take some shares or some bonds. How can a portfolio be better than this? We can invest in real estate or any other category of assets. So diversification is a key. I'll keep this topic brief because you can give importance and weightage to this point. So let's learn how do you think this portfolio can be. I've just made an illustration for you. Portfolio A, we have shares of MCB. Theoretically speaking, it is a very good investment because it's one of the prime leading bank having a very strong base and we invest all our money in this particular share. Visibly, it seems to be a good investment, but for finance professional, it is not because it is risking a lot of your money. In a one particular institute. So let's, if you look at down, then we have spread our investment in three categories. MCB, NBP, Allied Bank. Again, very good portfolio, have leading banks of the country, but again, not a very good portfolio. Why? Why? All the banks are in this. MCBB, National Bank, Allied Bank. If the banking sector has any effect or a strict rule, then our portfolio will be losing a lot. Now look at another possible word. We have MCB, we have Nishat Mills and we have DG Khan Cement. Very good portfolio. Bank, textile company and cement company. My answer would be again, no, it's not a very good. Why? Just think about it because all three companies belong to one group of companies that is Nishat Mills. So that means their connection or their main sponsors are same. So if something happens to that particular sponsor, then all these portfolio will get affected. So moving down, now we have MCB, we have some Lucky Cement and we have Sophia textile. Now in this out of these categories, I'll call it the best portfolio. Reason being MCB, banking sector from one group of companies, Lucky Cement and from entirely different group of company. And then we have Sophia textile mill, an entirely different sector. So this way we can see our portfolio is diversified. But again, that high level of diversification is not yet achieved. That would achieve when we insert in more asset classes like bonds, like commodities, like real estate and any other investment that was available to us. So famous statement is there, never put all your eggs in one basket. What does this mean? Suppose you have all the assets that you have parked in one place and if something happens to that basket, then all the eggs are finished. Similarly with your investment, if you have invested all the money in one place, then you can lose a lot. So what we have to do now is we need to diversify. How will they do it? Spread in different asset classes, spread in different assets. First go to different classes, then go to different bonds. If there is a bond class, then buy multiple bonds like Pell, MCB or any other company. And then do it. So this will be referred to as diversification. We should learn it by heart because that is going to be linked with other topics as well. Thank you.