It is not necessary nor productive to eliminate all risks. However, all actions mentioned below are what it would take to eliminate the risk. It is not a recommendation to sell.
- There are few risks that are worth managing to improve our returns.
E.g. A good quality company + at attractive valuation = One can accept stock concentration risk. Managing it would mean waiting till the market offers a better price and then selling a part of it to reduce this risk.
- Some risks are best avoided. E.g. Poor quality company available at low prices = We may avoid this risk at all times. However, your advisor may have reasons for holding this stock. If you are convinced, managing it would mean you limit it to less than say 3% of your portfolio.
- Portfolio related risks can get eliminated if one includes Cash & Debt Funds in the Portfolio Manager. Selling is an option if you cannot increase your portfolio size.