You can't pick next yr's winner asset class, so build diversified portfolio

Give higher weight in your core portfolio to asset classes that offer greater stability

To be able to construct an all-weather portfolio that can survive different phases of the market cycle, one needs to view how various asset and sub-asset classes in India have behaved over a longer period. A periodic table of returns allows investors to do that.

Winner rotates

The first takeaway from this table is that the winner asset class keeps changing. “The performance of asset classes is influenced by factors like stage of the economic cycle, liquidity, investor sentiment, stage in interest-rate cycle, and so on,” says Nirav Karkera, head of research, Fisdom.

According to Vaibhav Porwal, co-founder, dezerv, “Bond