Why is asset class diversification more crucial now than ever?
2 months, 3 weeks ago

Why is asset class diversification more crucial now than ever?

Live Mint  

MUMBAI : Two decades ago, investing mostly meant parking money in fixed deposits, property, or maybe equities, leaving little room for diversification—spreading investments across various asset classes. With Indian equities facing uncertain times—potential disruptions from US President-elect Donald Trump’s policies, Union Budget 2025-26, and foreign investment outflows, among others—experts recommend asset class diversification as a smart way to ride out the volatility. “Equity valuations are now high, and earnings growth has been slowing over the last two quarters, making asset class diversification more crucial than ever," Faria said. Investors gradually began embracing equities as a viable asset class for generating decent returns, thereby broadening the scope of asset allocation, said Nitin Raheja, executive director of Julius Baer India. “All asset classes will not perform well year after year; so, the key takeaway is that diversification paves the way for more stable returns over the long term," said Vaibhav Porwal, co-founder of Dezerv.

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History of this topic

Why Asset Allocation Matters More in a Bull Market
3 weeks, 3 days ago

Why Asset Allocation Matters More in a Bull Market

Live Mint  

A bull market provides an unparalleled opportunity for portfolio growth if the investor exercises prudence and discipline. With a good asset allocation plan, the investor can minimise impulsive decisions, such as selling in panic or over-investing during market exuberance. Asset allocation provides a disciplined framework for making rational decisions in both good and bad times, ensuring that investors avoid the …

Diversify investments across equities, fixed income & commodities: Rohit Murarka of Kotak Cherry
2 months, 1 week ago

Diversify investments across equities, fixed income & commodities: Rohit Murarka of Kotak Cherry

Live Mint  

Rohit Murarka, Business Head, Kotak Cherry believes the market is expecting some kind of stimulus in the budget as the overall economy, especially demand conditions, is facing a slowdown. Murarka suggested that investors diversify investments across various asset classes like equities, fixed income, real estate, and commodities. Asset classes like real estate and commodities can help hedge against global uncertainties …

The essence of diversification and how it helps your investment portfolio
1 year, 7 months ago

The essence of diversification and how it helps your investment portfolio

Live Mint  

We know that investors should not keep all their eggs in one basket. On one hand, the allocation in your portfolio is based on the historical performance of that asset, in terms of returns generated over the long term and volatility in the interim. The allocation to debt and gold will provide the countervailing force in times of equity market …

Why is asset allocation important in investment? Here are 6 reasons
1 year, 11 months ago

Why is asset allocation important in investment? Here are 6 reasons

Live Mint  

Investing is an art and creating a balance between various asset classes in order to increase returns and reduce risk is the ultimate goal for portfolio management. Asset allocation is a crucial component of investment strategy that involves dividing an investment portfolio among different asset categories, such as stocks, bonds, real estate, and cash, in order to achieve specific investment …

Diversification across asset classes is vital for a dynamic and strong portfolio
2 years, 10 months ago

Diversification across asset classes is vital for a dynamic and strong portfolio

Live Mint  

Asset allocation is a very important part of creating and balancing your investment portfolio. Asset Allocation also provides for a direction to the future income and cash flows of the investor in terms of where he should invest to achieve his/her financial goal. Asset Allocation reduces overall risk in terms of the variability of returns for a given level of …

Diversification in portfolio is key to maximising gains
4 years, 3 months ago

Diversification in portfolio is key to maximising gains

Live Mint  

The 2010-2020 decade has drawn to a close with a volatile journey for Indian investors. A big lesson has been asset allocation, rewarding investors who diversified over those who staked everything on one or few assets. Asset allocation is the investment of money in different asset classes to reduce overall risk in portfolio. It is different from diversification across different …

Market meltdown: Diversification is key to beat slump
11 years, 9 months ago

Market meltdown: Diversification is key to beat slump

Firstpost  

Diversification is a risk management technique that mixes a wide variety of investments within a portfolio. Time Diversification Since the achievement of financial goals is a lifelong process, it is advisable to invest in the asset classes over a period of time instead of a single point investment will ensure that one can average out the fluctuation in asset prices …

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