How have different assets performed? The Asset Allocation Dilemma

Everyone wants to invest in the best-performing asset class every year. But, the thing is, it is nearly impossible to choose the best asset class consistently. That�s why diversification is key.
Harry Markowitz rightly said that �diversification is the only free lunch in investing�. This is the notion that holding a broader range of assets can result in reducing the overall risk and increase the likelihood of achieving more stable and consistent returns over time.
Diversification is a vital concept widely accepted by many investors across borders. It is an important tool to help investors achieve the proper balance between return and risk for their situation. Crafting a diversified portfolio requires a blend of asset classes tailored on the basis of one�s risk profile, financial goals, and investment horizon. This is where asset allocation comes in.