One of the greatest investing tips to secure your portfolio against market risk is to distribute your resources
among several different asset classes and to spread out your holdings inside such asset classes.
That higher return has come with higher volatility, but by
combining several different asset classes that are at least somewhat uncorrelated, or better yet negatively correlated, a higher return per unit of risk is possible.
And, if you do have a lump sum to invest and you're worried about a market drop, diversify your money
into several different asset classes to minimize the impact of a big decline in one asset class.
The replication strategy primarily uses liquid futures contracts on
several different asset classes, including equity indices, currencies, fixed income securities and commodities.