Portfolio diversity and global exposure key to wealth creation

Global equities, bonds, fixed-income products and technology investments are giving UAE investors more options to diversify their portfolios beyond real estate. But investors must align their investment choices with their financial goals, risk appetite and time horizon to pursue returns without taking on risks they cannot afford, experts said at Beyond Property: Where to Invest and Grow Your Wealth in 2027, hosted by Gulf News in association with CUSP Wealth on October 29.

Property is no longer the only option

Property has long been a preferred route to wealth creation in the UAE. However, concentrating wealth in one asset class can leave investors exposed to market fluctuations.

“Property is a powerful asset, but it requires substantial capital and can be difficult to liquidate quickly when you need access to cash,” said Ramesh Murthy, Senior Executive Officer at CUSP Wealth.

Diversifying does not mean abandoning the property portfolio, Murthy said. “You are protecting the property you have already built. You are effectively putting a ring fence around it rather than relying on real estate alone.”

Jigar Sagar, Founder of Triliv Holdings, said investors should also consider investing in businesses through equities and bonds or by launching their own ventures.

“The way to create wealth is to have money making money for you while you’re sleeping,” he said. The right approach, he added, depends on an individual’s risk appetite and the returns they seek.

Murthy identified four developments investors should watch: wider access to financial markets, global diversification, demand for values-aligned investments and the growing use of artificial intelligence.

“Values are becoming non-negotiable for a growing number of investors. How they invest matters as much as what they invest in. They want investments that do not contradict their principles,” he said.

On AI’s role in investment decisions, Murthy said technology could improve research and analysis, but human judgement remains essential. “Technology provides insight, but human expertise is needed for judgement.”

Bonds, gold and equities offer different opportunities

Investors need to understand the risks and potential returns of different asset classes. Bonds can provide regular income and balance exposure to other investments, but interest-rate movements and changes in an issuer’s creditworthiness can affect prices and returns.

“If they form part of your overall portfolio, bonds can help balance your exposure to assets such as gold and property. However, bonds carry risks,” said Dr Fahmi Iskander, Chief Investment Officer at OGold.

Gold can also serve as a strategic holding, particularly during periods of inflation and geopolitical uncertainty.

“Gold can be a useful hedge against inflation and geopolitical uncertainty. Its role should be considered as part of the broader investment strategy rather than in isolation,” Iskander said.

Equities offer growth potential, but investors must also consider valuations and the risk of concentrating their money in a small number of stocks or sectors.

Start-ups offer another route to growth

Sagar said start-ups and small and medium-sized enterprises remained overlooked by investors who often favour more familiar asset classes. Investors who cannot establish businesses themselves can consider backing ventures founded by others, although start-ups carry distinct risks and may not offer the liquidity of listed investments.

Sagar expects more capital to flow into start-ups and entrepreneurial ecosystems. “Ultimately, it is a funnel. If you don’t have fresh start-ups, you won’t have fresh unicorns,” he said.

Look beyond the US

Geographic diversification is as important as spreading investments across asset classes, experts said. Holding a mix of assets within a single market does not protect investors from risks specific to that economy.

“When most of a family’s wealth is tied to one market, its fortunes rise and fall with that market,” said Murthy.

Dr Iskander advised investors to consider opportunities in other economies, particularly in Asia. “While the US has a lot to offer, its equities are more expensive for many investors. India and Japan, meanwhile, have proved resilient in recent years,” he said.

Plan portfolios for 2027

Edwin Mathew, Financial Adviser for CUSP Wealth, said investors should account for the concentration of equity market gains in 2026 when planning their portfolios for the coming year.

“Equity returns are increasingly concentrated, with gains coming from a handful of top stocks, particularly in technology and, more recently, AI. While AI offers long-term growth potential, its stocks come with significant volatility and uncertainty,” he said.

Mathew advised investors to build a foundation with a broad-market index before making concentrated bets on individual stocks.

“An index captures the winners while weeding out the losers, making it a practical option for those who cannot pick individual stocks.”

He also advised investors to match their investments to their risk appetite and time horizon, rather than chase high returns without considering the risks.

Making investments more accessible

Fedor Panteleev, Chief Product Officer at Denara Group, which serves CUSP Wealth, said uncertainty about markets and when to invest often deters people from getting started.

“At CUSP Wealth, we want to give investors the tools to choose how they want to invest,” he said.

“Users can select companies themselves or choose portfolios developed with financial advisers who assess their needs, investment horizon and risk appetite. They can contribute a fixed amount each month instead of managing every investment decision themselves,” said Panteleev, adding, “The key is to start and stay invested.”

Four principles for building wealth

Ramesh Murthy, Senior Executive Officer at CUSP Wealth, shares his tips for investing wisely

• Start with your goals: Know what you are investing for and when you will need the money.

• Start early: You do not need a large sum to begin. “Time matters more than timing the market.”

• Spread your risk: Diversify across asset classes and markets. Property need not be your only investment.

• Check before you invest: Verify the provider’s regulatory credentials and ensure you can access human advice.