Using Asset Allocation to Ride Out the Volatility

Diversifying across asset classes like equities, gold and fixed income helps not only build, but also protect wealth

Markets deep in the red

RBI and the Indian Rupee both pulled down the benchmark indices last week. Nifty dropped down 5.62% to close at 10,316.45 and Sensex closed down 5.11% to end at 34,377.

Read more about RBI’s surprise move to keep repo rates unchanged.

A recession-proof way to build & protect wealth

The stock markets have been very volatile recently. In such times, it becomes very important to add stability to your portfolio through asset allocation. The All Weather Investing smallcase helps you achieve the same by investing your money in three different asset classes — Gold, Equity and Fixed Income. Gold and fixed income provide protection against market volatility and equity gives superior returns in the long-term.

As can be seen in the chart below, in last 2 months, Nifty has fallen around 10%. But during the same period, the All Weather Investing smallcase was down only a little more than 1 percent. Even last week, when Nifty fell by more than 5%, the All Weather smallcase was down by less than a percent. The smallcase has generated CAGR returns of nearly 11% in the last decade!

It is very important to diversify across asset classes for building a solid core portfolio. Understand everything about the core-satellite investing approach and how the All Weather Investing smallcase helps you build the portfolio core through our last webinar.