New Delhi, June 22 -- There are various investment assets such as equity, debt and gold. In a given market situation-perhaps a certain level of GDP growth, inflation or geopolitical conditions-these assets behave in a certain way, giving us the basis of portfolio diversification.

However, in the current situation, all asset classes seem to be bearish. There is no place to hide, except in liquid funds or cash. This kind of situation happens once in a while. Let us make some sense of it.

Our equity market's returns have turned negative since peaking in September 2024. There is no issue about the fundamentals of the Indian economy. It is more about relentless selling by foreign portfolio investors (FPIs) since October 2024.

FPIs sold a ne...