<a href="https://play.google.com/store/apps/details?id=com.fundsindia" target="_blank"><strong>Mutual funds</strong></a>, which provide diversity across a number of asset classes, are commonly used in systematic investment plans (SIPs). By distributing Risk, diversification lessens the effect of a single investment's bad performance. Through systematic investment plans (<a href="https://play.google.com/store/apps/details?id=com.fundsindia" target="_blank"><strong>SIP</strong></a>s), you can reduce your overall Risk by investing in a well-managed mutual fund that offers a diverse portfolio and expert management.