Achieving an optimal level of risk-adjusted return may require investors to look beyond a single asset class and build a portfolio with a mix of equities, debt and gold, according to a study by WhiteOak Capital Mutual Fund.
The report explains that different asset classes respond differently to changing economic cycles and market conditions. Since it is not possible to consistently time which asset class will outperform, combining assets with different correlation characteristics can help improve the overall risk-adjusted return of a portfolio.
