New Delhi, June 25 -- Retail investors often find themselves stuck between two extremes. On one side, they spread their money across 50-60 stocks with tiny allocations, thinking more stocks mean more safety. On the other hand, they put most of their money into just 5-15 stocks they "believe in". But both approaches have their downsides.

That brings us to the fundamental question: how much diversification is enough?

Let's unpack the data and reasoning behind this magic number.

In the world of investing, the advice "don't put all your eggs in one basket" is more than just a cliche; it's backed by decades of financial research. At the core of this idea is Modern Portfolio Theory (MPT), introduced by Harry Markowitz in 1952. It explains ho...