New Delhi, Dec. 26 -- While the winners among asset classes keep rotating every year, the absence of any such pattern over the past 10 years (see chart) reinforces the importance of asset allocation in building a balanced portfolio.

Here's a quick look at the performance of different asset classes in 2024.

Unlike last year, when Indian stock markets were on a tear with the BSE 250 SmallCap Total Return Index (TRI) delivering 47.3% returns, this year the stock markets seem to have taken a breather. The BSE 250 SmallCap TRI is up 24.1% in year-to-date returns (as of 23 December). The BSE 150 MidCap TRI is up 26.2% this year (from 42.4% in 2023) and the BSE 100 TRI-which tracks large-caps-is up 13.7% (from 23.2% in 2023).

In 2024, the sto...