How to Diversify Your Investment Portfolio in India

Putting all your money in one asset class is risky. Learn how to spread your investments for better risk-adjusted returns.

What Is Diversification?

Diversification means spreading your investments across different asset classes so that poor performance in one doesn't destroy your entire portfolio. In India, the main asset classes are: Fixed Deposits, Recurring Deposits, Equity (stocks/MFs), Gold, and Real Estate.

A Simple Allocation Framework

A common rule of thumb: 100 minus your age = equity percentage. If you're 30, put 70% in equity and 30% in debt (FDs/RDs). Adjust based on your risk tolerance.

  • Conservative: 60% FDs/RDs, 30% MFs, 10% stocks
  • Moderate: 40% FDs/RDs, 40% MFs, 20% stocks
  • Aggressive: 20% FDs/RDs, 40% MFs, 40% stocks

How RupeeTracker Helps

RupeeTracker's portfolio health score measures your diversification. If you're too concentrated in one asset type, the score drops — giving you a clear signal to rebalance. Track all asset types in one dashboard to see your actual allocation.

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