Risk: Extreme

The Barbell Strategy

Avoid the "middling" risks. Keep 90% of your money in ultra-safe assets (Bonds/FDs) and use the remaining 10% for high-risk, asymmetric bets (Crypto, Startups).

The Barbell Approach

Balance Extremes

Avoid the "middle ground". Keep the majority of your wealth hyper-safe, and use a small portion for high-risk, high-reward bets.

Configuration

Total Investable Amount

₹

₹10.00 L

Safety Allocation90% Safe

80% (Aggressive)95% (Conservative)

Hypothetical Upside

Principal Protection

90.0%

Even if your risky bets go to ZERO, you retain 90% of your initial capital (stored in Safe assets).

Safe Assets

Moonshots

₹9.00 L

Allocated (90%)

₹1.00 L

Allocated (10%)

"I am not risk averse. I am ruin averse."
— Nassim Taleb

Worst Case Scenario

Risky Assets Value

₹0

Remaining Wealth

₹9.00 L

Your core capital (90%) remains intact.

Upside Scenario (5x)

Risky Assets Grow To

₹5.00 L

Total Wealth

₹14.00 L

1.4x returns on total portfolio.

The Philosophy

Popularized by Nassim Nicholas Taleb, the Barbell Strategy acknowledges that "medium risk" assets often carry hidden tail risks (like the 2008 crash).

Instead of trying to predict the market, you structure your portfolio so you cannot be ruined (Safe Side) but are exposed to unlimited upside (Risk Side).

Safe Side (Weight: 80-90%)Treasury Bills, Fixed Deposits, Gold, Hard Cash. Things that hold value even if the world ends.
Risk Side (Weight: 10-20%)Options, Crypto, Angel Investing, Small Caps. Things that can go to zero or go 100x.