Multi-Asset Investing is The Financial Equivalent of A Well-Balanced Diet

Just as you track the calories and nutrients for a well-balanced diet, you need a balanced portfolio that has multiple assets to balance the risks and returns.

- VIKASH BAID

The challenge of investing wisely in today's complex financial environment could be compared to maintaining a balanced diet. Much like a good diet, which involves consuming various food groups to ensure that one derives all the needed nutritional elements, a balanced investment strategy diversifies across different asset classes to achieve financial well-being.

To explain further, the consumption of food is aimed at deriving the following main nutrients: proteins, carbohydrates, fats, vitamins, and minerals. This variety makes sure that the body draws all of the essential elements it needs for proper functioning from its foods. Multi-asset investing is likewise concerned with the spread of investments across asset classes, such as equities, fixed income, and commodities like gold or silver. It reduces risk due to the fact that poor performance in one asset class can be offset by better performance in another, promoting portfolio stability.