Bangalore: Risk is an omnipresent factor in investments. Stocks tend to fall, when inflation is on the rise. The both are inversely correlated. With uncertainty prevailing in the market, many new investors are looking for ways to ground their portfolios. If you want to be a smart investor then shouldn't sell your investment holdings the moment you feel you're going to incur losses. Instead you should be aware of your portfolio and the losses you're willing to endure in order to increase your wealth. Acquiring stability is not easy to find in this market and at the same time highly impossible to avoid risk entirely when investing in the markets, but with certain smart moves you can insulate your portfolios from major bumps. Dividends The least known to protect your portfolio is investing in dividend-paying. Dividends account for an important portion of a stock's total return. During t he drastic the period when the market is declining the protection dividends provide is important to risk-averse investors and usually results in lower volatility. And if you have the company paying dividends they tend to grow earnings faster than those that don't. Because rapid growth leads to higher share prices which, in turn, generates higher capital gains. Dividends are a good hedge when stock prices are falling.