ASSET ALLOCATION - 10 YEAR ANALYSIS
This table, courtesy MINT RESEARCH, ranks 10 asset classes namely
Large cap, Mid cap, Small cap, International, Credit Risk, G-Sec, Gold, Corporate Bond, Real Estate & T-Bill... in order of their returns from the highest to lowest... For each calender year from 2012 to 2021..
For example, the maximum returns were delivered by Midcaps (38.52%) in 2012 Whereas Small caps gave a staggering Returns of 58.96% this year ie 2021..
As No specific pattern is being observed in the returns of asset classes on yearly basis, it reinforcing the importance of diversification of Asset allocation in our portfolio as against trying to consistently predict the next winning asset.
A diversified portfolio of stocks, bonds and physical assets is key to steering through every market condition.
Such a portfolio may not deliver the highest return but will perform competitively across all market cycles.....
HAPPY INVESTING🙂
Biswajit Roy
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