When it comes to mutual fund investment , diversification is a tried-and-true strategy that can help you manage risk and potentially enhance your returns. Diversifying your mutual fund portfolio involves spreading your investments across different types of mutual funds in India to create a well-rounded and balanced approach to wealth creation. In this article, we'll explore strategies for building a diversified mutual fund portfolio tailored to your financial goals. Understand Your Investment Goals Before you embark on your journey of mutual funds investment plans , take a moment to define your investment goals. Are you saving for retirement, buying a house, or building an emergency fund? Understanding your objectives beforehand will help you determine the appropriate mix of mutual funds. If your goal is long-term wealth creation, you might consider equity mutual funds for higher potential returns. For short-term goals, debt funds could be more suitable due to t