Many investors diversify their portfolios by investing in the broader stock market spanning several sectors and industries. This, however, is a daunting task - retail investors may find it difficult to track even one sector properly, let alone multiple sectors. It is better, we always say, to focus on one or two sectors you are comfortable with, and increase your knowledge in those sectors.
Assuming you do that, one good way to diversify your holding is by investing in passive instruments such as REITs within your sector. If you are a biopharma investor, this can