Diversification is critical to reducing risk. To create a balanced portfolio, you could split your ₹50,000 among different asset classes like equities, debt, and fixed income. For instance, you might put ₹20,000 in a high-return but riskier option like Peer-to-Peer lending, ₹15,000 in a balanced mutual fund, and the remaining ₹15,000 in a safer option like a Fixed Deposit.