Diversification can include investing in alternative assets, bonds, assets in emerging markets, or moving from small-cap and mid-cap holdings. According to estimates by local asset managers, asset diversification into various investment products generated a return of around 5-12% in 2019. Fundamentally, no asset class performs the same at all times. Diversification might seem complicated and expensive, but by keeping a high percentage of a particular asset class in your investment portfolio, you risk losing more when that class takes a hit. One recommended asset class for investors trying to diversify is alternative assets, meaning assets other than stocks, bonds or cash.

Source: Bangkok Post March 03, 2020 00:11 UTC