Topic
portfolio diversification
Finance Asset Allocation and Diversification: Managing Mutual Fund Risk
Santosh Agarwal, CEO of Paisabazaar, outlines two core strategies for managing mutual fund risk: asset allocation based on financial goals and risk tolerance, and diversification across and within asset classes. The guidance highlights how equity, fixed income and gold behave differently under market conditions, and how age and investment horizon should shape allocation decisions.
Logistics Seahawk Research Shows Shipping Volatility Can Diversify Investment Portfolios
Frankfurt-based Seahawk Investments released research arguing that divergence across shipping sub-sectors can be exploited for portfolio diversification via long-short equity investing. The study shows that replacing half of traditional equity allocation with its long-short fund lifted Sharpe ratio from 0.49 to 0.73, reduced volatility, and increased annualised returns. The fund showed low correlation with equity and bond markets.