Tips to build a disciplined, multi

Tips to build a disciplined, multi-asset portfolio

Experts urge investors to build simple, resilient portfolios, focus on core equity, debt and gold, avoid over diversification, and use global and new-age assets selectively.

By Anshul

With markets moving through frequent shifts in interest rates, geopolitical uncertainty and evolving asset classes, financial experts say the focus for investors should move away from simply what they currently hold to how portfolios should be constructed going forward.

They say that diversification is not about adding more assets, but about building portfolios that are resilient, understandable and aligned to long-term goals.

Here are key points to take a note:

Start with a simple, purpose-driven core

Experts suggest that portfolios should begin with a straightforward multi-asset structure rather than layering multiple overlapping products.

A common framework continues to centre around equities for growth, debt for stability and income, and gold as a hedge, with selective additions, depending on risk appetite and investment horizon.

Karan Rijhsinghani, Head of Product & Advisory at Atom Privé Financial Services, said investors should think in terms of allocation buckets rather than products. Equity, he noted, should remain the primary growth engine, debt should provide stability and liquidity, and gold should function as a strategic hedge rather than a tactical position.

He also pointed to selective global equity exposure as a way to reduce domestic concentration risk.

The key forward-looking shift, he said, is ensuring each allocation has a distinct purpose rather than expanding holdings for the sake of diversification.

Build for resilience, not complexity

Phanisekhar Ponangi, Co-Founder & CIO at MavenArk, said diversification in uncertain environments should simplify portfolio outcomes rather than complicate them. He advised investors to avoid excessive exposure to volatile or complex financial assets and instead focus on structures that can absorb short-term shocks.

He suggested a tilt towards large- and mid-cap equities, caution on long-duration fixed income, and selective use of alternatives. Real estate, in his view, can serve as a stabilising long-term allocation.

The broader direction, he noted, is to construct portfolios that reduce sensitivity to market shocks rather than amplify them.

New-age assets: Use selectively, not structurally

With growing interest in REITs, InvITs, global equities and digital assets, experts caution against trend-driven allocation and recommend a more function-first approach.

Rajesh Singla, CEO & Fund Manager at Alpha AMC, said REITs and InvITs may be used selectively for income generation, while global equities can act as a satellite allocation for diversification and currency exposure. However, he cautioned against aggressive exposure to digital assets given their volatility and evolving regulatory framework.

Ishkaran Chhabra, Founding Partner & Chief Investment Counsellor at Centricity WealthTech, said investors should first identify the role an asset plays before including it in a portfolio. He noted that global equities can help reduce concentration risk and REITs/InvITs can support income needs, but digital assets — if considered at all — should remain a very small allocation.

The common guidance across experts is clear: new asset classes should complement core portfolios, not complicate them.

Over-diversification is the real risk

A consistent concern highlighted by experts is over-diversification, which often results in overlapping exposures and diluted returns.

Hitesh Punjabi, Assistant Professor – Finance at K J Somaiya Institute of Management, suggested keeping portfolios within a limited number of asset classes — typically 5-7 — and clearly separating core holdings from tactical allocations. He recommended a core-satellite approach where the majority of capital remains stable, and only a smaller portion is used for higher-risk opportunities.

Rajesh Singla also noted that excessive layering of funds and strategies often leads to index-like returns at higher cost, without improving portfolio outcomes.

The forward-looking approach, experts suggest, is to reduce product clutter and focus on allocation discipline rather than accumulation.

Gold and debt: From tactical to structural roles

Traditional safe-haven assets are also being repositioned within portfolios.

Rather than being treated as short-term hedges, gold is increasingly viewed as a structural stabiliser. Rijhsinghani suggests maintaining a moderate allocation as part of long-term portfolio construction rather than adjusting it frequently based on price movements.

On fixed income, Singla and Chhabra highlighted its dual role — providing stability as well as income — especially in a shifting interest rate environment. Debt, they noted, is increasingly regaining importance as a meaningful portfolio component rather than just a defensive buffer.

Ponangi also pointed to a preference for credit-oriented strategies over long-duration bonds in the current cycle.

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Note To Readers

Disclaimer: This article is for informational purposes only and should not be construed as investment advice. Readers should consult certified experts before making any investment decisions.

(Edited by : Shoma Bhattacharjee )