Multi-asset allocation outperforms single-asset bets, data shows

Multi-asset portfolios combining equity, debt and gold have delivered higher returns with lower volatility than single-asset strategies over 25 years, analysis by FundsIndia and WhiteOak Capital Mutual Fund shows. FundsIndia's study of rolling returns from January 2000 to July 2026 found that a 70:15:15 mix of equity, debt and gold produced an average seven-year return of 15% and crossed 10% annualised returns in 92% of rolling periods. The same portfolio had a maximum drawdown of 40%, compared with 59% for the Nifty 50 TRI.

WhiteOak Capital's study of daily data from September 2001 found that adding 10% equity to a pure debt portfolio raised average annual return from 6.77% to 7.97% while reducing volatility from 6.37% to 5.76%. A mix of 70% debt, 10% equity and 20% gold delivered 9.80% return with 5.51% volatility, lower than pure debt's volatility. Union Asset Management Company's chief investment officer Harshad Patwardhan said asset allocation is the first key step in investing, and that multi-asset funds allow investors to outsource allocation decisions.