### Building Resilient Portfolios: Strategy for Growth 📈

A robust investment strategy requires shifting from single-share ownership to diversified portfolios to mitigate macro and company-specific risks. • Risk Framework Risk is categorized into four tiers: Country risk (macro shocks), Market risk (inflation/interest rates), Sector risk (industry-level plunges, e.g., tourism), and Company risk (governance or debt issues). • Asset Class Breakdown • Equities: Vital for long-term wealth. Export-oriented stocks offer a natural currency hedge for the Sri Lankan context. • Fixed Income: Bonds, Treasury Bills, and corporate debentures provide stable, predictable income backbones. • Cash/Alternatives: Money market funds offer liquidity (optionality), while real estate and gold act as inflation buffers. • Life-Stage Allocation • Growth Phase: Younger investors may lean toward 70% equities, 20% fixed income, and 10% cash/alternatives. • Stability Phase: Retirees should prioritize capital protection, shifting toward 60% fixed income and 30% equities. • Key Takeaway Resilience is built through diversification across apparel, banking, and consumer staples to offset concentration risk. Discipline and periodic rebalancing are more critical than market timing.