Having a diversified asset portfolio is always advisable for an investor. However, diversification across different asset classes and investment avenues seems essential to survive and prosper in the current uncertain times. In fact, there are two primary reasons to diversify your portfolio -- one is to take the maximum advantage of the present market conditions and the other is to protect yourself against downturns. The basic concept is to divide your investments amongst asset classes and other options where the returns made are inversely proportional to each other.

True, the common sense approach of diversification -- stay invested for longer period and invest regularly -- has definitely stood the test of time. Still, no one is sure "what should one do in the current market conditions when equity has risen too quickly over the last six months, interest rates have fallen, real estate prices have corrected and gold has risen to a new high,"

Here we take a look at some of the asset classes and investment options which can be a good bet in these uncertain times.