*** Perspectives on Investments*** Section
In investing – Asset allocation is considered the Holy Grail of Investing .
But, What is a Multi Asset Allocation Strategy ?
Does it really work across Markets- developed and emerging ?
Is it really possible to generate superior risk adjusted returns by missing of Assets ?
How much difference of volatility is there vis a vis 100% pure equity.
Well, lets’ deep dive to answer these questions using the data below.
(Image- Myths – page 10)
Multi Asset Allocation strategy involves mixing of different assets to create a portfolio which delivers superior risk adjusted returns than one single asset. In our analysis we have used Multi Asset Allocation Strategy with the following combination-
Equity- 50%
Debt-20%
Gold-15%
International Equities 15%
The result- In a 20 year long term period Multi Asset Allocation Strategy has generated 12.4% returns with standard deviation of 11.3%
And Equity has generated returns of 12.9% with standard deviation of 21.3%.