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When it comes to investing, savvy money managers advise that you spread your money - that is, you "diversify" your investments in 2016. Diversification protects you from losing your assets in a market slowdown of certain liquid and fixed funds. The sharp volatility in stock prices in recent years is proof enough; that putting all your eggs in one basket is a risky strategy. And risk is not spread from having a lot of investments, i.e. many investments do not make your portfolio diversified. To be diversified, you need to have lots of different kinds of assets and thus financial planners across the globe harp on asset allocation for a balanced portfolio.

"An investment in real estate can never be a bad idea" is the leading thought in the Indian market. This is because Indian real estate prices have been booming (especially in Tier 2 and Tier 3 cities) and this helps future sellers to capitalize on secondary markets to make a quick profit before the land prices hit an all time high.

For Indians, buying a house has also always been an emotional and functional affair. A house not only offers security to the buyer but it also helps him save on taxes if a buyer uses a home loan to fund his purchases. The same logic holds true for a second home. A second property would not only help you save on your taxes but it offers an opportunity for capital appreciation in the long term with regular rental returns if unused. In tourism intensive second home markets there is a very lucrative option of short let's to frequent travellers. Goa being ranked as the 6th best holiday destination in Asia by Smart Asia traveller and a favourite hotspot frequented by domestic and foreign tourists, naturally makes it the topmost choice for investments in the holiday home market. 2016 is slated to be a year of volatility and thus diversification is the key to safeguard any investments.

Hence, demand for second homes is predicted to be particularly high among baby boomers who are prepositioning for retirement and planning to diversify their portfolio in the new year. Therefore, don't miss out on the bandwagon of great returns and diversify your investments with real estate in 2016 for the long term appreciation of your assets!