Red, blue, green, yellow, orange, purple, pink…
So many colours enter our lives on the day of Holi. These colours bring with them festive cheer, excitement, relief from tensions and joyful contentment.
Each colour has its own characteristics, a special meaning:
- Red denotes purity
- Yellow brings healing
- Blue symbolises power
- Green signals new beginnings or growth
and so on..
Similarly, if we want our investment portfolio to paint a happy picture, we must give it a good palate of colours(asset classes), each with their own distinct characteristics:
- Real Estate: Possibly Inflation-beating Growth, Very Illiquid, Low Yield, Large Blocks of Capital, High Physical Risks, High Transaction and Maintenance Costs
- Equity: High Inflation-beating Growth, High volatility, High Liquidity, Low yield, Small Blocks of Capital, No Physical Risk
- Fixed Income: No Growth, Medium to High Safety of Capital, Varied Liquidity, Low to Medium Yield, Varied blocks of Capital, No Physical Risk
- Gold: Inflation-Matching Growth, Perceived Safety of Capital, Highly Liquid, No Yield, Varied Blocks of Capital, High Physical Risks, High Transaction and Maintenance Costs
Now, many of us have the tendency to invest in just one favourite asset class. But Holi wouldn’t look as bright if you played with only one colour, would it? So why invest in just one asset class?
Fill up your investment portfolio with different assets classes in the right proportion for a secure and vibrant financial picture.
Good Analogy
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