Spread investments in equities, bonds, gold and cash to tackle volatility

Having exposure to assets that have low correlation with each other, to help offset the losses in riskier assets

The year 2018 has been a challenging year for investors. The equity markets have had a rough ride with the benchmark Nifty index down by about 8 per cent from its August 2018 high. The selloff has been sharper in both magnitude and duration for midcap indices, with the Nifty midcap index down by about 19.29 per cent from its January 2018 high. Other assets have also come under pressure with the benchmark 10-year government bond yield rising above 8 per cent for the first time in four years and the rupee depreciating by over 10 per cent in 2018. The