Increase Your Surface Area for Investments

It means increasing Avenues for investments. Be opportunistic for asset classes. Don't get attached to one Asset class. Do asset allocation and invest across asset classes including international Equity.

There are many options now to invest in different asset classes.

Domestic equity, international equity, US Treasury, fixed income or Indian bonds, Gold or other commodities.

WHY TO INVEST ACROSS ASSET CLASSES

In present elevated markets limiting risks to the portfolio is important. Diversification is important but works best when the constituents of a portfolio do not move in tandem. Their price movement dynamics must be fundamentally different.

Now equity, Debt, and Gold move based on various factors and thrive in different types of market conditions. These three asset classes have a very low correlation to each other's moves across timelines.

Over 10 – 20 years Equity- Bonds /Debt, Gold –Debt, and Equity gold have negative or very low correlation coefficients. Adding them to your portfolio would ensure that your portfolio is protected on the downside and can generate optimal risk-adjusted returns.
In Short, it’s a good time to look at multi-asset Allocation funds.

A blog from Santosh G Akerkar.
For Educational and Awareness purposes.

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Akerkar Wealth

AShop no 6, Sun Tower, G D Ambekar Marg, Parel Bhoiwada, Mumbai - 400012.

M9920890060 / 9702558065

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