Sugar stocks have been trending down sharply in the past weeks after record domestic production in India is impacting prices. Sugar producers have been investing in new high-yield sugarcane varieties, and the result has been bumper harvests on the same acreage. As a consequence, investors who invested significant portions of their portfolio in sugar stocks are now seeing red, after share prices for sugar stocks fell.

Superstar investor Anil Kumar Goel for example, has a portfolio that includes Dwarikesh Sugar, Dhampur Sugar, Triveni Engineering and Uttam Sugar Mills. He has in fact raised his stake in key sugar stocks in the most recent quarter, including in Triveni, Uttam Sugar and Dhampur Sugar. He raised his stake in Triveni the most, increasing it by 1.04%.

Anil Goel holds a portfolio with a net worth of over Rs. 1,000 crore. More than 15% of this portfolio is in sugar stocks. He is experiencing something all investors pick up along the way - that the best way to weather downturns is to hold on to a diversified portfolio, and spread bets across sectors.