Time to rejig your investments? Here’s why gold is the X-factor between lower and higher-return generating portfolios Still, are some combinations better than others? Welcome to TrendMap, your quick, visual guide to the performance of different investment segments. In this edition, we compare seven asset combinations. Portfolios with gold have delivered a notable return boost in recent years, while those with zero gold exposure have consistently ended up at the bottom, says Sameer Bhardwaj
Balanced portfolios with gold deliver consistent outperformance
In this TrendMap, we have considered the weighted annual returns for comparison. The equal weighted portfolio of equity, debt and gold has topped the charts in seven of the past 11 years. Portfolios with a strong debt component ranked in the top two in six of those years.#sr_widget.onDemand p, #stock_pro.onDemand p{font-size: 14px;line-height: 1.28;} .onDemand .live_stock{left:17px;padding:1px 3px 1px 5px;font-size:12px;font-weight:600;line-height:18px;top:9px} #sr_widget.onDemand .sr_desc{margin:0 auto 0;} #sr_widget.onDemand .sr_desc{color: #024d99;margin-top:10px;} #sr_widget.onDemand .crypto .live_stock .lb-icon{8px 6px 5px 3px !important} #sr_widget.crypto.onDemand a.text{border-bottom:1px solid #ccc;padding-bottom:5px;display:block;width:100%} #sr_widget.onDemand .sr_desc .text p, #stock_pro.onDemand .sr_desc .text p{font-size:12px;font-weight:400;}
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On the other hand, high volatility associated with the portfolio with a strong equity component positioned it in the lowest two ranks in six out of the past 11 years. Looking at the risk-return profile of the seven defined portfolios in the past 11 years, the average weighted annual return and average standard deviation of the portfolio with a strong equity component have been the highest. The average return and average standard deviation have been the lowest for the portfolio with a strong debt component.
Gold has clearly emerged as a crucial asset—every portfolio with gold delivered positive returns after the Covid-19 outbreak. In contrast, portfolios with zero gold exposure have recorded a loss in one of the six years since 2020.
Source: ACE MF. Rankings based on weighted annual returns. *2025 rankings are based on YTD weighted annual returns, as on 18 April 2025 closing values. Other years’ rankings are based on weighted annual returns that are calculated between the first and last trading day closing values. Benchmarks used: Equity: Nifty 500 Index; Debt: Crisil Composite Bond Index; Gold: Nippon India ETF Gold BeES.
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This story originally appeared on: India Times - Author:Faqs of Insurances
