InvestorQ : Why it is essential to look at asset classes other than equity also?
Abhisha Yadav made post

Why it is essential to look at asset classes other than equity also?

Answer
user profile image
Tisha Malhotra answered.
1 year ago


As an investor, equity is one of the asset classes that you have an option to buy. Look at other asset classes too seriously. For example, the RBI has taken a dovish stance in this policy that has kept the window open for further rate cuts. That will typically be positive for long term bond funds with exposure to government debt and corporate bonds. Try to diversify some of your investment into such debt funds so that you get the triple benefit of safety, security as well as capital appreciation when rates come down.

Gold is another asset class that serious investors need to look at. Gold can be bought in a variety of ways. The government regularly announces gold bonds where one can hold this precious metal in non-physical form. You not only get the benefit of safety and convenience but also participate in price appreciation of gold. Remember, historically when there is global uncertainty and geopolitical risk in world markets, gold has outperformed other asset classes. You can also buy gold ETFs where your asset value will appreciate with the international price of gold. This is surely an investment option for you to consider seriously.