Now, not every investor approaches global markets with a specific theme in mind.

Many simply want their portfolio to include exposure beyond India. They understand the importance of global diversification but may not have a strong view on whether artificial intelligence, cybersecurity, or space technology will lead the next decade.

For these investors, the objective is usually simpler.

They want a portfolio that is sensibly diversified across global markets and managed with a long-term perspective.

This is the role of Core Portfolios.

Instead of concentrating on a single theme, core portfolios combine multiple asset classes to create a balanced allocation. They typically include exposure to global equities across different regions, along with fixed income instruments that help moderate volatility.

To see how this works in practice, consider the Multi-Asset Class portfolios available on Vested.

These portfolios are constructed using global ETFs that represent different parts of the global market. Each ETF provides exposure to a broad segment of the economy, allowing the portfolio to achieve diversification across geographies and asset classes.

For example, a typical allocation in the Multi-Asset Class – Aggressive portfolio includes instruments such as:

• iShares Core S&P 500 ETF for exposure to large US companies
• MSCI EAFE ETF represents developed markets outside the United States
• MSCI Emerging Markets ETF provides exposure to emerging economies
• iShares Core Total US Bond Market ETF represents global fixed-income markets
• iShares High Yield Bond ETF for additional credit exposure

Together, these allocations create a portfolio that is spread across regions such as the United States, developed international markets, and emerging economies, while also including bonds that help stabilise the portfolio during periods of market stress.

The difference between the available core portfolios lies primarily in risk tolerance.

A Conservative portfolio allocates a larger share to fixed-income securities and focuses more on capital preservation.

A Moderate portfolio balances equity exposure with bonds to provide both growth potential and stability.

An Aggressive portfolio allocates a larger portion to equities across global markets and is designed for investors who are comfortable with higher volatility in pursuit of long-term growth.

In the Vested platform, the Multi-Asset Class – Aggressive portfolio, for instance, places a significant portion of the allocation in global equities through ETFs while maintaining smaller allocations to fixed income instruments.

Like thematic portfolios, the underlying securities in these portfolios are held directly in the investor’s brokerage account. The portfolio structure simply determines how the capital is distributed across the different assets.

These portfolios are monitored and periodically rebalanced. If market movements cause allocations to drift away from their intended structure, adjustments may be proposed to bring the portfolio back in line with its original design.

For investors who want global diversification without needing to choose individual stocks or investment themes, core portfolios provide a good, solid starting point.