Why does Smartfolios recommend investing in a basket of stocks rather than in an individual company?

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It is always recommended to invest in a basket of stocks rather than in an individual stock because it allows for risk diversification. While some companies may perform well, few may underperform over a period according to the market situation. 

By investing in a stock basket, focus would be on the overall performance rather than relying on the performance of a single company. This approach reduces overall risk. 

It is also suggested to invest in multiple Smartfolios of different strategies to diversify the overall risk further.