As investors grapple with geopolitical tensions, sticky inflation, shifting interest-rate cycles and concerns over global growth, wealth advisors are increasingly emphasizing the importance of building portfolios that can withstand multiple market environments rather than trying to predict the next crisis.

Experts say an "all-weather portfolio" — one designed to perform reasonably well across varying economic conditions — can help investors navigate uncertainty while staying focused on long-term goals.

"Markets can often handle bad news better than uncertainty," said Ankit Jain, co-founder and director of Growthvine Capital. "The challenge arises when there are conflicting signals and constantly changing narratives. In these situations, investors can only focus on what is within their control. That includes asset allocation and diversification."

Equity remains the engine

According to experts, equities should continue to form the largest portion of long-term portfolios as they have historically delivered inflation-beating returns.

"Equity drives returns in periods of strong growth and stable inflation and when trade tensions ease or geopolitical fears subside, equity markets rally hard and fast," Jain said.

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The exact allocation depends on an investor's age, financial goals and risk appetite. Younger investors with long investment horizons can afford to maintain a larger equity exposure, while those nearing retirement may prefer a more conservative mix.

Amit Suri, founder and CEO of AUM Wealth, said investors often make the mistake of choosing between growth and safety when they actually need both.

"The ideal balance depends less on market conditions and more on personal financial goals and investment horizons," he said.

Why experts recommend holding gold

Gold has traditionally acted as a hedge against inflation, currency fluctuations and geopolitical uncertainty.

"Whenever there is increased uncertainty, gold moves. It also acts as an inflation and currency hedge," Jain said.

He recommends allocating 10-15% of the portfolio to gold, arguing that even a relatively small exposure can make a meaningful difference during periods of stress.

The yellow metal has historically performed well during crises and periods of elevated inflation, providing diversification benefits when equities struggle.

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Debt provides stability and liquidity

While debt instruments may not generate the highest returns, they play a crucial role in preserving capital and providing flexibility during market downturns.

According to Jain, debt becomes particularly useful when economic growth slows and central banks begin cutting interest rates.

Fixed-income investments also provide predictable income and help reduce portfolio volatility.

Suri noted that cash and liquid assets are equally important because they offer flexibility and can help investors take advantage of market corrections without being forced to sell long-term investments.

Diversification is the key

Experts stress that no asset class outperforms every year.

"There are periods when equities shine, periods when bonds outperform and periods when gold provides the best protection," Suri said. "By diversifying across asset classes, sectors, geographies and investment styles, investors reduce the risk of a single event causing significant damage to their wealth."

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International equities, REITs and InvITs can further enhance diversification and provide protection against currency-related risks.

Ultimately, experts say the goal of an all-weather portfolio is not to predict the next crisis but to remain invested through market cycles.

"An all-weather portfolio is not designed to win every season," Suri said. "It is designed to ensure that investors remain financially prepared, emotionally comfortable and invested long enough to benefit from the power of compounding."

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Published on: Jun 14, 2026 12:20 PM IST