Mrin Agarwal, founder of Finsafe India, said investors should diversify their portfolios beyond equities to better weather market volatility [1].
Broadening asset allocation is critical for building a resilient strategy that protects capital during downturns. Relying solely on a single asset class can expose investors to significant losses when specific markets crash.
During a discussion at the CNBC TV18 studio in India, Agarwal said investors should explore multiple asset classes, including gold and non-U.S. stocks [1]. He also said AI-related investments have the potential to modernize a portfolio [1].
Gold remains a central point of discussion for diversification, though its price history shows significant swings. The metal previously plunged nearly $1,000 from its historic highs before recovering [2]. Despite such volatility, analysts said it serves as a hedge against systemic risk.
Other financial guidance emphasizes a structured approach to risk management. Some experts have outlined five key tips for effective diversification [3] and identified five specific mistakes investors should avoid in 2026 [4]. These strategies often involve balancing high-growth assets with more stable, income-generating ones.
Additional frameworks for the current year include five smart ways to diversify portfolios to ensure long-term sustainability [5]. By spreading investments across different geographies and sectors, investors can reduce the impact of a decline in any single region or industry.
“Investors should diversify their portfolios beyond equities to better weather market volatility.”
The shift toward multi-asset diversification reflects a growing caution regarding the concentration of wealth in US-centric tech stocks. By integrating gold, international equities, and AI-specific assets, investors are attempting to decouple their financial health from the volatility of a single economy or sector.
