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ANKIT SAMRAT
Stocks offer an effective way to diversify an investment portfolio. By investing in stocks from different industries, regions, or market sectors, investors can spread their risk and reduce exposure to any single company or sector.
Adding bonds to an investment portfolio can enhance diversification. Bonds have a different risk and return profile compared to stocks, meaning they may perform differently under various market conditions.
Real estate typically has a low correlation with other asset classes, such as stocks and bonds. Adding real estate investments to a portfolio can help spread risk and reduce the overall volatility of the portfolio.
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