MULTI-ASSET INVESTING IS GETTING REAL

When you construct your investment portfolio, you want to protect your money and grow it to beat inflation.

- RAJAS KELKAR

HEN you construct your investment portfolio, you want to protect your money and grow it to beat inflation. You know the value of your hard-earned money because you got there with a considerable effort. You have made sacrifices to save money and worked harder to make more money. Letting it go to inflation or factors that are not in your control can make you uncomfortable.

The world now is going through immense uncertainty. Global trade wars, regional conflicts, technology disruptions and local demand and supply issues are making it harder for policymakers and analysts to determine the future trajectory of inflation, interest rates and economic growth. There are green spots in all crises. This time, you can see top investment firm analysts pointing at those green spots but lacking conviction in their commentary. There are a lot of 'ifs' and 'buts' in every potentially attractive story.

For example, many global banks are divided over India's attractiveness as an investment destination for foreign investors. Domestic mutual funds hold a significant amount of their portfolios in cash to protect their schemes from losing value in volatile times.