Asset Allocation: The Key To Long-Term Investment Success

In today's volatile financial landscape, uncertainty dominates market movements, and this unpredictability directly impacts asset returns. Market behaviour often defies logic, even when macroeconomic conditions appear consistent. Take, for example, foreign portfolio outflows: January 2025 witnessed a negative foreign fund outflow of ₹51,586 crore on a rolling twelve-month basis, the first such decline in 20 months, according to NSDL. On the other hand, mutual funds purchased equities worth ₹4.65 lakh crore over the same period. Despite this robust buying, benchmark indices have corrected by nearly 10 per cent from their peak.