Financial Experts Urge Diversification Beyond Equities

Mrin Agarwal, founder of Finsafe India, said that investors should diversify their portfolios beyond equities using multi-asset exchange-traded funds (ETFs) ^[1].

This shift in strategy is critical as investors seek to protect their wealth from market swings. Relying solely on stocks can expose a portfolio to significant risk during downturns, making asset diversification a primary tool for long-term stability [1, 2].

Speaking on CNBC TV18’s "Let's Talk Money" program, Agarwal said multi-asset ETFs help create a more resilient financial foundation ^[1]. These funds allow investors to gain exposure to various asset classes, such as gold, bonds, and international equities, within a single investment vehicle [2, 3].

Building a resilient portfolio requires a balanced approach to asset allocation. By integrating different classes, investors can offset losses in one area with gains in another, which helps maintain steady growth over time [3, 4]. This method reduces the overall volatility of the investment experience—a necessity for those planning for long-term wealth growth [1, 2].

Experts said the goal is not necessarily to maximize short-term returns but to ensure the portfolio can survive various economic cycles ^[4]. Multi-asset strategies provide a structured way to manage risk without requiring the investor to manually trade multiple individual assets [2, 3].

As market conditions shift, the move toward these diversified tools reflects a broader trend in wealth management. The focus has shifted toward sustainability and resilience rather than aggressive equity-only growth [1, 4].