There has been an age-old debate when it comes to investing. Does equal weight strategy or differential weight strategy work better? In equal weight, if you have to invest Rs 100, you will allocate Rs 20 to each stock. In differential weight, one may allocate Rs 50 to one stock, Rs 20 to another, and then remaining Rs 30 to 3 others. Both have their advantages and disadvantages. The equal weightage probably works better at time of investing in a sector and that too when there is a structural change taking place. In the IT sector, the winner of AI is still unknown, so it will be better to go for an equal weight strategy with the right mix of stocks.
