Generally, timing the market is complex and a losing game; so staying invested, monitoring without tinkering too much, having a strategic long-term allocation and having an objective that is consistent with your investment horizon and tolerance for risk, that is how to manage a portfolio, he says.

Renzi-Ricci continues: "I am not a believer of having a tactical allocation without having a strategic allocation first. Once you have a strategic allocation then you can look at the tactical, but without a clear strategic vision, timing is a losing game.

"You need to anchor yourself to what your portfolio should look like at a strategic level and that is where diversification really kicks in."

True diversification therefore means not only spreading the risk across different types of assets, duration, currency and style but also managing it appropriately.

This can help reduce the impact of any single market shock, as well enabling portfolio managers to capture the opportunities that may arise from different recovery paths and growth drivers.

According to Hoppe: "The Covid-19 pandemic has been a wake-up call for many investors to rethink their portfolio allocation and seek true diversification. It challenged these inherent strengths and led to opportunities for active managers to add value."

But, as Renzi Ricci adds: "Don't try to be too smart."

Simoney Kyriakou is editor of FT Adviser