Mehra Advocates for Higher Global Allocation, Urges Investors to Remain Invested

Market Insights: Embracing Uncertainty and Diversification

First Global's founder, Devina Mehra, recently emphasized the importance of abandoning the illusion of certainty in market forecasting and instead focusing on probabilities, asset allocation, and discipline. Speaking at the Crystal Gazing Summit, organized by PMS AIF WORLD, Mehra highlighted the futility of annual forecasts and the need to manage probabilities.

Key Takeaways:

• The probability of 2026 being better than 2025 for Indian equities is "quite high" due to negative sentiment in 2025.
• Missing just the 10 best days in the history of the BSE Sensex would have cost investors two-thirds of their long-term returns.
• A minimum of 30-40% of a portfolio should be allocated to global assets over time to mitigate risks.
• Gold should be held in single digits as part of a diversified strategy, with caution against over-allocation.

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Market Analysis:

The Indian market is characterized by under-diversification, with most portfolios having less than 5% exposure to global markets. This is a concern, given the potential for currency depreciation and other global market risks. Mehra recommends a diversified approach, including a minimum of 30-40% exposure to global assets.

Recommendations:

• Remain invested in the market, but avoid concentrated portfolios.
• Diversify globally to mitigate risks.
• Keep precious metals in single digits as part of a diversified strategy.

Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline

About PMS AIF WORLD:

PMS AIF WORLD is India's leading wealth services firm, specializing in alternative investments and serving over 800 clients across Rs 2,200 crore in PMS and AIF assets. The firm follows a knowledge-first philosophy, focusing on delivering well-informed investing for its alpha-seeking clientele.