Stocks are primarily used to do what in an investment portfolio?

Stocks are primarily used to increase diversification in an investment portfolio as they typically offer a different risk and return profile compared to other asset classes, such as bonds or cash. By including stocks in a portfolio, investors can spread their risk across various sectors and industries, which can lead to overall improved stability and potentially higher returns over the long term.

It's important to recognize that while certain stocks can provide dividends (a form of income), they do not guarantee a fixed or stable income like bonds or other fixed-interest investments. Moreover, stocks do not directly minimize taxes; in fact, capital gains from stocks can be subject to taxation. Lastly, offsetting fixed-interest investments is more about balancing risk and return, rather than serving as the primary purpose of including stocks. Therefore, increasing diversification is the fundamental role stocks serve in an investment portfolio.