How to sleep easy during this volatile market

Many of us love watching the occasional masala movie at the theatre, for they pack comedy, action, romance and tragedy within a three-hour runtime. But in real life, most of us would rather swear off such wild swings in emotions, particularly when it involves their money. So, if the current volatility in the equity market is jangling your nerves, we have a solution: diversification. Instead of going all-in into equity, you can consider a few asset classes that can provide better balance to your overall portfolio. The reliable asset classes to be a part of your investments are: International equities Debt Gold Combining these investment avenues with your domestic equity portfolio can significantly reduce downside risk. International equities Investing in international equities can be a smart way to diversify your portfolio. While some markets like the S&P 500 move like the broad based Indian markets, they still offer some unique benefits like currency diversification and exposure to sectors that have a lower presence in India. However, there are some challenges to consider. Due to RBI restrictions, only a few funds currently allow investments in foreign equities . It's also impor

This article was originally published on December 05, 2024.