While investing one must always remember about diversification and having options, you can refer to smart beta to have better understanding as well.  if you are planning to invest in equity than make sure you refer to equity index to have a proper understanding, this index’s play a key role while you are investing.

These index services are very crucial terms and figures that one must take in count while you are making an investment.

Now why one must have options while they are investing in anything?

• Cost efficiency – Having different options is also very important as it is very cost efficient. Make sure if you have different options while you are investing, this is not only cost efficient plan as all investments vary in cost and returns, so diversification maybe beneficial with respect to cost-benefit relation.

• Risk – diversifying risk is a smart choice, if you do not want to fail completely than make sure you diversify your risk as well. if you invest your all money in one option than that can be harmful as if your investment options fail you will be losing all your money but diversification will enable you from saving it. As not all the options of investment crash at the same time.

• Potential returns – Similarly if you diversify your income you not only improvise and make your risks lower but also helps you to have potential returns, having potential returns is important, different options of investment give you different opportunities to rise in returns as well. there are chances that your option A might to brilliant and option B do moderately okay, if you would have only invested in option B than that would hurt your potential returns but now it doesn’t.

• Strategy – having a full proof strategy is also very important; one must know that if they have invested in different options they can have a full proof strategy of getting their investment into potential and getting apt returns on it. Analyze all the options and invest accordingly only as this might have a drastic effect on your option.

Source : https://dividendindex.jimdo.com/2017/04/19/why-having-investment-options-is-important/