Here's how to make your investment portfolio more resilient

In the event of a market correction, dividend yield can stem erosion in value of your portfolio

Currently, valuations within the equity markets are at a premium to long-term averages, more so within the mid-and small-cap segments. The trailing 12-month price-to-earnings ratio of the BSE Sensitive Index, or Sensex, is currently at 22.7, higher than its five- and 10-year averages of 19 and 19.3 per cent, respectively. In such a scenario, there is always the risk of a market correction. One way for investors to guard against it is through opting for style diversification within their portfolios. If they have been investing only in growth funds so far, they should now also opt for value-oriented funds, such