Archive · 2 Aug 2026
Equity and Gold Can Boost Returns Without Raising Risk
A research team looked at how mixing different kinds of investments changes how much money you can make and how risky it is.
They found that putting a little bit of stock into a bond portfolio can actually make it earn more money and not be riskier.
Adding gold to the mix can also help you earn more while keeping risk low.
The best mix they found was a small amount of bonds, a lot of stocks, and a bit of gold, which gave the highest yearly return.
The worst risk was when you had mostly bonds, a little stock, and some gold.
This shows that careful mixing of assets can make investing safer and more profitable.
Adding 10% equity to a 90% debt portfolio raised returns to 7.99% and lowered volatility to 5.76%.
A 20% equity addition to 80% debt produced 9.20% return with the same volatility as pure debt.
Including 20% gold in a debt‑equity mix improved returns while keeping volatility near that of a pure debt portfolio.
The 10% debt, 70% equity, 20% gold combination yielded the highest return of 17.02%.
The 70% debt, 10% equity, 20% gold mix had the lowest volatility of 5.52%.
- Who
- WhiteOak Capital Mutual Fund
- What
- Study on portfolio risk and returns with equity and gold
- When
- September 2001 to June 2026
- Where
- India – BSE Sensex, MCX Gold, Crisil 10‑Year Gilt Index
- Why
- To show that adding equity and gold can improve risk‑adjusted returns
- Study Period
- September 2001 – June 2026
- Data Source
- WhiteOak Capital Mutual Fund
- Key Finding 1
- 10% equity added to 90% debt increases return and reduces volatility
- Key Finding 2
- 20% gold added to debt‑equity mix improves return with similar volatility
- Highest Return Portfolio
- 10% debt, 70% equity, 20% gold – 17.02%