According to Laxminarayan, such an arrangement gives investors more room to maneuver, for example, to "tilt towards riskier assets in a growth environment". He also stressed that a portfolio should have more exposure to equities over other assets.
Region wise, he is overweight emerging markets and favors Asia for the long-term.
"As you go forward, growth still exists. If you look into next year's growth, for example, you're going to have Asia Pacific back possibly growing anything north of seven percent. That is very, very impressive by any kind of imagination," he explained.
His key theme for alternative investment is to go for assets that are non-correlated.
"I would say look for things that are credit-linked… look for things that are M&A driven, so not directly into equity," he said.
For investors who are worried about a second phase dip in the global downturn, Laxminarayan recommends shifting back to safe assets like Treasurys and dividend plays. The greenback is also a safe bet.
"Everybody wants to be short the dollar now," he said. "If you do see another big leg down, you have to really start moving. In terms of your currencies allocation, back a lot into the U.S. dollar, because that is one thing that is a pet trade for everyone."
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Catch "Protect Your Wealth" on CNBC's Asia Pacific network every Tuesday on "CNBC's Cash Flow," Wednesday on "Asia Squawk Box" and Thursday on "Capital Connection."