New Delhi, Feb. 20 -- Sharing an important lesson on asset allocation, Kalpen Parekh, Managing Director and CEO of DSP Mutual Fund, said that investors who ignore either equities or defensive assets like gold and bonds risk undermining long-term wealth creation.

In a social media post on X, Parekh highlighted the importance of owning "both buckets", arguing that growth and stability are essential for compounding wealth.

Not owning stocks will mean no compounding and beating inflation, Parekh wrote. However, he cautioned, "Not owning gold & bonds means a very volatile portfolio that could force us to sell stocks in panic at lows and still lose compounding. Both buckets matter."

Equity investing has, over the years, outpaced inflation ov...