A Balanced Portfolio Ensures Consistent Returns

With returns driving most financial investment decisions, chasing the latest fad is a costly mistake many commit. Going after one year’s top performing asset class can easily become next year’s laggard for your portfolio. Without a proper asset allocation approach, the nuanced art of going for consistent compounding is never learnt; instead high-risk, high-return bets become the norm and this leads to disappointments and a rocky investment journey. The truth is a diversified portfolio across multiple asset classes, over long time, tend to deliver consistent result thereby helping one meet every financial obligation in time and in a stress free manner. A game of snakes and ladders Equity as an asset class tends to outperform every other asset class over long term. But this journey is fraught with volatility. However, the winners in terms of asset classes keep rotating every...