Asset Allocation Strategy to Safeguard Against Market Fluctuations

Invest in different asset classes, such as equities, debt, gold, etc., so that if a particular segment doesn't perform in a given situation, others will come to the rescue.

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Domestic retail investors are increasingly moving away from traditional investment avenues like bank fixed deposits and embracing equities as an asset class. The almost linear upward trend in stock markets since the pandemic, spread of financial literacy, increasing digitization, improving regulation and a period of low interest rates coupled with high inflation has led to this structural shift in the way India is choosing to save and invest. The rising number of demat accounts and SIP inflows in equity-oriented mutual funds are proof of this trend.