Adding bonds to your portfolio reduces overall returns
While it’s true that bonds might not match the high returns of stocks during bull markets, their inclusion in your portfolio can enhance overall risk-adjusted returns.
During times of market volatility, when stocks may decline, bonds can provide a buffer and reduce your overall portfolio risk. Diversification with bonds can improve the risk-adjusted returns of your portfolio.
Inclusion of bonds can lead to a more balanced and less volatile portfolio, which can be beneficial for long-term wealth accumulation and financial stability.
Before investing in bonds, understand the basics of bonds and the different types of bonds available in India here.
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