Keep your balance

The Middle Path, a core teaching of Buddhism, emphasises balance and avoiding extremes, a principle that applies to all aspects of life, including wealth creation. In investing, this idea translates to asset allocation. It means spreading your money across multiple asset classes to flatten risk and create a more stable financial journey. However, in the last two years, I met many people who started to believe that the best way to manage investments is to be in the extremes. They were chasing returns and insisting on investing all their money in mid-cap, small-cap or sectoral funds. Or, they were waiting for a sharp correction. Those chasing returns were having a gala time until the market recoiled about six months back. I came across many anxious discussions on business channels. I also had the opportunity to speak with investors who had directly inves

This article was originally published on April 17, 2025.