Here's why you must diversify your portfolio to earn attractive returns.

They say, “Don’t put all your eggs in one basket,” for a reason!

Investing all your hard-earned money in one market or asset class can be very risky and offer limited growth. In contrast, diversification reduces risk by creating a heterogeneous portfolio with financial instruments from different geographies and asset classes. The technique aims to maximize returns by investing in assets that react differently to the same uncertain event.

For example, if inflation shows a trend of steady rising, interest rates are likely to follow - this event will favorably impact new bond issuances, attracting money from equity markets, thus adversely imp