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As the other answer has pointed out if you hold direct shares about 25 is enough, which prevents a huge loss if one company goes under and it minmizes the costs associated with buying and selling. The more stocks you hold the more overheads you have, not only that you have to track the performance and dealings of many more companies. So 50 is more than ...


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Diversification means having a variety of investments in a portfolio. Varies studies have suggested that for stocks, 25 or so of them achieves that. An investment in the Euro Stoxx 50 would certainly achieve a good degree of diversification. An investment in the S&P 500 would provide far more than that.


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