Luxury stocks have a place in almost any portfolio. Luxury stocks also have a history of outperforming the broader market, and, since the sector is made up of companies that have proven themselves, they are relatively low-risk investments.

Investing in high-quality luxury-goods groups which are in effect a diverse portfolio of brands can be a cost-effective way of gaining broader exposure to Asia beyond China. The advantage is that one can gain from Asian growth but often from lower-risk, more stable stocks than those that tend to be available locally. 

Given that luxury goods are growing at rates higher than GDP, you are getting more “bang for your buck” buying luxury stocks than simply betting on global equities. The sector may look expensive, but it is worth the geared play on global growth. 

The luxury-goods sector is a large portfolio of global brands that offer an unusually high degree of strong balance sheets, good compounding sales growth and high and steady margins. 

Throw in the product and regional diversity plus lower-risk exposure to emerging-market growth trends, and it all adds up to a compelling addition to any portfolio.

My pick is $Ermenegildo Zegna NV(ZGN)$ . The Italian luxury house has earned a reputation for quality and craftsmanship in that time. True luxury brands have some of the best moats out there -- and it takes a long time for a new company to achieve such recognition. Zegna is growing at an impressive rate, with 27.5% year-over-year revenue growth last quarter. It's on fire in the Middle East and Africa (86.4% revenue growth), the U.K. (61.6%), North America (33.2%), and Latin America (33.2%). China is a key market for the company, and while sales there were only up 3%, Zegna should be a major beneficiary when China's economy fully reopens.

@Tiger_chat