Global Diversification In A Stress-Free Manner

Asset Allocation is the key for a successful investment experience. It involves an investment strategy of diversifying your portfolio across various asset classes. This primarily works on the principle of risk mitigation by not concentrating your portfolio only in one asset class. As a result, this approach tends to offer better risk-adjusted returns on your investments taking care of the unnecessary concentration which could be asset-centric or region specific. Since all asset classes - equity, debt and commodities — have distinct market cycles, often not in sync, it is always prudent to allocate your investments suitably across assets to optimally gain over the long term. Typically, when it comes to asset allocation, majority of investors tend to confine themselves only to two domestic asset classes — equity and debt. This way, though their portfolios look diversified,...