Why Multi-Asset Approach Matters

When it comes to investing for the long term, the most popular and talked about asset class is equities. As a result, without understanding the inherent nature of equities, investors tend to go headlong and invest all their monies into equities. When the market is in an upswing, the decision may look like a smart one but when the tide turns around, the same decision of investing starts to look like a mistake. Worse is when investors in a bid to protect their capital decide to redeem their investments during the market correction phase. By doing so, they have converted their notional loss into a permanent loss. As a result, the investment experience tends to sour.