New Delhi, July 2 -- Diversification has long been regarded as one of the cornerstones of successful investing, helping investors reduce the risks associated with concentrated bets on individual stocks or sectors. Weighing into the debate, Zerodha co-founder and CEO Nithin Kamath said most investors are better off owning a broad basket of stocks or exchange-traded funds (ETFs) rather than building concentrated portfolios. He used the recent performance of the IT sector to make his case.

In a post on X, Kamath pointed to the recent performance of the IT sector to explain why diversified investing often works better over the long term. He noted that while the Nifty IT index has fallen around 8% over the last five years, Tata Consultancy Se...