MULTI ASSET - A SUPERIOR INVESTMENT STRATEGY FOR CURRENT TIMES
Investors India|March 2022
Over the last decade, we have witnessed easy liquidity conditions and rate cuts by global central banks which created a conducive environment for equity markets to perform.
S Naren
MULTI ASSET - A SUPERIOR INVESTMENT STRATEGY FOR CURRENT TIMES

As a result, valuations across asset classes remains elevated when compared to their longterm averages. Historically, it has been observed that when any asset class is fully valued, they tend to become volatile, a case which is increasingly becoming visible in the Indian equities.

Going forward, especially in 2022, with a scenario of withdrawal of stimulus measures, geo-political tensions etc., one may require more of active management to navigate the equity market. At such times, a combination of active management and multi asset strategies is likely to provide better outcome for investors in the near term. Therefore, rather than focusing on a single asset class like equities; investors should look at a combination of other assets including debt, gold, real estate and global funds.

Investors who are looking for diversification to various asset classes but aren’t sure how to go about it, a multi asset category fund could be their one stop solution. Not only is it the easiest approach to take exposure to several asset classes; but is also one of the convenient ways of investment to reduce concentration risk in any one asset class. A multi asset strategy allows investors to switch from one asset to the other, thereby allowing an investor to capitalise from the opportunities present across asset classes. This eventually tends to deliver better risk-adjusted return.

How different Asset Classes have performed Historically

هذه القصة مأخوذة من طبعة March 2022 من Investors India.

ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 8500 مجلة وصحيفة.

هذه القصة مأخوذة من طبعة March 2022 من Investors India.

ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 8500 مجلة وصحيفة.

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