In the realm of investments, balancing risk and reward is a crucial aspect of achieving financial security. For investors pursuing high-risk strategies, fixed deposits (FDs) serve as a stabilising component. With guaranteed returns and low risk, FDs complement high-risk investments effectively, creating a diversified portfolio. Understanding how FDs, including those offering attractive FD interest rates for senior citizens, can enhance investment strategies ensures financial stability, even during market volatility. This article explores how fixed deposits can support high-risk strategies while securing returns and mitigating risks.

Why diversification is crucial in investment strategies?

Diversification is a key principle in financial planning. It involves spreading investments across various asset classes to minimise risk. High-risk investments, such as equities or cryptocurrency, offer significant returns but come with the potential for substantial losses. Complementing these with safer options like the best FD ensures a cushion during unfavourable market conditions. By blending low-risk and high-risk …