Hi, under the equity market- categorisation by the industry There's a line that categorisation provides a structure for investment management and decision making. can anyone please explain to me what does this line means
If you were an investment manager with hundreds or thousands of equities to choose from for your portfolio each time that you wish to make a purchase, having them split up into categories of similar types of stock (eg health care companies, mining companies, banks, engineering companies etc) will help to give more structure to your decision-making. In particular, it can help you to specialise, by helping you to focus your attention on one category or a small number of related categories.