Our investment philosophy is built on a robust Asset Allocation framework — the foundation for long-term, consistent results.
Why It Matters
Optimal Risk-Adjusted Returns
- Allocating investments across uncorrelated asset classes helps achieve superior risk-adjusted returns.
- This is often measured using the Sharpe Ratio, which evaluates return relative to risk.
Real-World Example
- A portfolio with predefined allocations and annual rebalancing across Equity, Debt, Gold, and International assets has historically demonstrated strong resilience.
- During FY 2020, when domestic equities fell -26.91%:
- Gold delivered +33.17%
- Debt and International exposures cushioned the downside
- This showcases the true value of diversification.
The Essence of Multi-Asset Investing
- A well-constructed multi-asset portfolio provides smoother returns and lower volatility.
- Compared to a pure equity portfolio, it helps investors stay invested confidently through market cycles.
Thinking Ahead
P.S. – Considering a review or adjustment of your asset allocation? Drop a comment below and let’s explore how to strengthen your portfolio structure.
Control Wealth Advisers