Asset Class Performance Over the Years
A recent data report shows how different asset classes performed every year. It compares equity, debt, gold, and different portfolio mixes. For example, in 2017, a portfolio with 70% equity, 20% debt, and 10% gold gave around 26% return. (see the image below)
Another portfolio with 60% debt and the rest in equity delivered around 10%. This clearly shows that how you divide your money between assets can change your final return in a big way.
Equal Allocation Portfolio at the Top
The data also highlights portfolios where money was divided equally. A 33% equity, 33% debt, and 33% gold mix performed very well in many years. In 2019 and 2020, this equal allocation portfolio was at the top. In fact, in 6 out of 10 years, well-diversified asset allocation portfolios stayed in the top layer of performance. This shows that balance often works better than extreme positions.
Strong Returns Even in Tough Years
There were only three years—2017, 2021, and 2023—when the equal allocation portfolio did not beat others. Even then, it did not give negative returns. It delivered around 14%, 10%, and 15% in those years. In 2022, when overall returns were low and the highest return was around 6%, diversified portfolios still managed stable results. Even in down years like 2026, returns were still positive at about 3.9%.
Long-Term Returns and Volatility
When looking at 10-year returns, portfolios with more than 70% equity ranked first. However, higher equity also means higher volatility. Returns may be higher, but ups and downs are sharper. For investors who want smoother growth and less tension, equal allocation portfolios offer a more stable journey. The curve of growth looks more steady over time.
Simple Portfolio Formulas That Work
If someone wants a simple strategy, the one-third rule can work well—one-third equity, one-third debt, and one-third gold. Even if debt is not preferred, a 50-50 mix of equity and gold has also shown strong performance. Some people may choose to replace debt with real estate. A mix of one-third equity, one-third real estate, and one-third gold can also be managed easily. The key lesson is simple: balanced asset allocation often gives steady and reliable results over time.
