India, Feb. 9 -- At times, asset classes such as equity and gold can turn volatile in the short term. Hence, an investor needs to build a diversified portfolio with asset allocation. During such volatile times, the fixed-income component of the investment portfolio can act as a shock absorber, providing the much-needed stability. Within the fixed-income category, depending on their needs, an investor can choose from various financial products, including bonds. Having bonds in an investment portfolio has several benefits. In this article, we will look at some of the reasons why bonds should be a part of an individual's investment portfolio.

1. Asset allocation: Different asset classes take turns to outperform each other year after year. H...