How to think about Asset Allocation in India – Part 1

Getting usual Asset allocation advice is like listening to in-flight safety demonstrations. The airline crew has to go through the motions, and you don’t even have to pretend to listen. 

That’s because the way we think and talk about Asset Allocation is broken. Asset Allocation is NOT about settling for lower return in exchange for lower volatility. 

In Part 1 of this two-part post, we examine the evidence how an actual and implementable asset allocation strategy outperforms an equity-only strategy. In Part 2 we’ll look at a few allocation scenarios and take a stab at what we think works best for most investors.

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