2022 was one of the worst years for portfolios consisting of only stocks and bonds, as both went down together. Asset allocation plays an important role in determining portfolio returns. Multi-asset class investing has become quite popular, in the world, after the global financial crisis in 2008. Even in India there is a lot of interest lately, with new NFOs coming in this category. They grew over 30% in 2022, and are around an AUM of 24k crore.

The global economy may have come out of the woods in the year 2023, but uncertainties remain. If the recent episodes of volatility have taught us one thing, it is that diversification is important. And that only stocks and bonds may sometimes not be enough. In this episode, I take a look at the current investing environment and a multi-asset approach for investing.