diversified

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Building a diversified investment portfolio is crucial for managing risk and optimizing returns. For Indian investors, diversification involves spreading investments across various asset classes to ensure that no single asset's poor performance drastically affects your overall portfolio.

This article will guide you through five simple steps to build a diversified investment portfolio, with examples relevant to the Indian market.

5 Steps to Build a Diversified Investment Portfolio Step 1: Define Your Investment Goals and Risk Tolerance

Before you start investing, it's essential to define your financial goals and understand your risk tolerance. Your goals might include saving for retirement, buying a home, funding your children's education, or simply growing your wealth.

Knowing your risk tolerance helps you decide how much risk you’re willing to take on to …