How Multi-Asset Investing Reduces Portfolio Risk

Investing can feel like a ride with ups and downs. But there is a way to make portfolios less susceptible to these sharp swings. Yes, it is multi-asset investing. Diversification and Risk Reduction: It is an investment strategy where investors invest across different asset classes, such as equities,  both domestic and international, debt and commodities like gold and silver, which results in a diversified portfolio. This strategy can significantly reduce portfolio risk and keep you on track to achieve your financial goals. Each asset class has a role to play in the investors’ portfolio. Generally, when you check the returns that different asset classes generated during a specific time frame, then you will see that the returns of the different asset classes will significantly vary. For example, fixed-income investment instruments offer stable returns when the stock market is...