3 days ago
How Investors Could Allocate Across Four Major Asset Classes
The study looked at four places where people can put their money: Indian shares, debt, gold and US shares.
Each investment performed differently in different years.
Indian shares had their worst year in FY2020 but their best year in FY2021.
Debt did not lose money in any year shown, although its returns were more modest.
Gold had one of its strongest years in FY2026.
US shares had the highest long-term return in the study when measured in rupees.
A sample portfolio invested the most in debt and produced an 11.4% yearly compounded return.
Investors seeking higher historical returns might consider more US equities, while those seeking greater stability might consider more debt, though the study does not guarantee future results.
A WhiteOak Capital study compares Indian equities, debt, gold and US equities from FY2011 to FY2027 year-to-date.
Gold had the highest historical CAGR at 14.2%, followed by US equities at 19.6% in rupee terms.
Indian equities fell 22.9% in FY2020 and rebounded with a 69.8% return in FY2021.
Debt was the most consistent asset class, with no negative annual return and a 7.6% CAGR.
The study’s sample portfolio allocated 25% to Indian equities, 45% to debt, 25% to gold and 5% to US equities, producing an 11.4% CAGR.
- Who
- WhiteOak Capital Mutual Fund conducted the market study; the analysis concerns investors considering four asset classes.
- What
- The study compares historical returns and illustrates a multi-asset allocation across Indian equities, debt, gold and US equities.
- Where
- The assets include Indian markets, gold measured in Indian rupees, and US equities measured in Indian rupees.
- When
- The comparison covers FY2011 through FY2027 year-to-date, with FYTD measured as of 31 July 2026.
- Why
- The study examines how different allocations affected historical returns and risk characteristics.
Return-Seeking Allocation
Stability-Focused Allocation
Portfolio emphasis
Return-Seeking Allocation
Increasing exposure to the S&P 500 TRI could potentially raise historical returns because it had the highest CAGR in the study, at 19.6%.
Stability-Focused Allocation
Increasing exposure to debt could support greater stability because the CRISIL Short Term Bond Index had no negative annual return during the period shown.
Role of diversification
Return-Seeking Allocation
Allocating more money to higher-returning assets may improve historical portfolio returns, although those assets can experience sharper swings.
Stability-Focused Allocation
Maintaining meaningful allocations to debt and gold can diversify the portfolio across assets with different annual performance patterns.
Illustrated allocation
Return-Seeking Allocation
The study’s 5% allocation to US equities could be increased by investors prioritizing historical growth potential.
Stability-Focused Allocation
The study’s 45% allocation to debt reflects a more stability-oriented approach, while gold and equities provide additional diversification.
Key facts
- Indian equities benchmark
- BSE Sensex TRI
- Debt benchmark
- CRISIL Short Term Bond Index
- Gold benchmark
- MCX Gold in rupee terms
- US equities benchmark
- S&P 500 TRI in rupee terms
- Sample allocation
- 25% Indian equities, 45% debt, 25% gold and 5% US equities
- Sample portfolio CAGR
- 11.4% over the study period
- Highest benchmark CAGR
- S&P 500 TRI in rupee terms at 19.6%
Sources
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