Any portfolio should have a balanced mix of asset classes. Diversification helps in reducing the overall risk. For example, equity investments offer higher returns than all other asset classes in the long run, but they are also riskier.
To balance this, one should invest in debt related products. Although these also carry some risk, they are considered safe. Also pay attention to the taxation rules to know what the net return will be. Any change in the rules may affect your reason for investing in the product.
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