Go multi-asset to offset equity-market volatility, say analysts

Determine your ideal equity allocation, based on drawdown capacity

With experts expecting higher volatility in equities in 2022, new investors who have entered the markets over the past 18 months and have never experienced a steep or prolonged downturn need to watch out. If they are invested only in equities currently, or are heavily overweight on equities, they should diversify at the earliest.

According to S Naren, executive director and chief investment officer, ICICI Prudential Mutual Fund, “Market volatility could spike in 2022 as and when the US Federal Reserve (US Fed) starts to taper its bond purchase and hike rates. Another risk remains in terms of impact and