Friday, 9 October 2026 SourcesAbout🌓
🇮🇳 IN ▾
BREAKING
› Ronit Roy leases Andheri west office space for Rs 1.39 crores over five yearsi› Watch: U.S. visa shock, trade tensions: Is India turning to middle powers? | Worldview› ICE shoots Dominican man in New York after car rams officers during arrest› Sugarcane farmers threaten highway blockade from October 13› A.P. resumes Operation Stripes as Explorer nears human habitations in Rajamahendravaram› University Teachers’ Association (Contract) seek regularisation, implementation of UGC pay scale› IISc study says strong magnetic fields could allow white dwarfs to grow beyond the Chandrasekhar limit› Nithin Kamath says Zerodha’s youngest client is just 28 days old: What to know about investing for kids› Australia struggle as Nortje and Jansen make their mark› ET Startup Awards 2026: Meesho, Groww CEOs on how life changes after an IPO› Ronit Roy leases Andheri west office space for Rs 1.39 crores over five yearsi› Watch: U.S. visa shock, trade tensions: Is India turning to middle powers? | Worldview› ICE shoots Dominican man in New York after car rams officers during arrest› Sugarcane farmers threaten highway blockade from October 13› A.P. resumes Operation Stripes as Explorer nears human habitations in Rajamahendravaram› University Teachers’ Association (Contract) seek regularisation, implementation of UGC pay scale› IISc study says strong magnetic fields could allow white dwarfs to grow beyond the Chandrasekhar limit› Nithin Kamath says Zerodha’s youngest client is just 28 days old: What to know about investing for kids› Australia struggle as Nortje and Jansen make their mark› ET Startup Awards 2026: Meesho, Groww CEOs on how life changes after an IPO
Business

Should you keep a 100% equity portfolio? Here's what 20 years of data reveals about risk-adjusted returns

LiveMint - Money ·
Should you keep a 100% equity portfolio? Here's what 20 years of data reveals about risk-adjusted returns

If you are looking only at returns, allocating 100% to equity may appear to be the clear winner. But returns tell only one part of the story. The amount of volatility taken to generate those returns also matters.

Data from UTI Mutual Fund shows that while the 100% equity portfolio delivered higher returns, it also carried greater risk. Here’s how adding debt or fixed income to the portfolio changes the equation.

The comparison uses the Nifty 100 TRI to represent equity and the CRISIL Short Term Bond Fund Index to represent fixed income or debt. The 50:50 portfolio assumes an equal allocation to the two.

*Source: UTI Balanced Hybrid Fund presentation, Data as on 30 June 2026, Equity denotes Nifty 100 TRI, Fixed Income denotes CRISIL Short Term Bond Fund Index. 50E:50FI denotes 50% allocation to Nifty 100 TRI Index and 50% Allocation to CRISIL Short Term Bond Fund Index.

For example, ₹ 1 lakh invested 20 years ago in equity would have grown to around ₹ 10.5 lakh today. The same amount would have grown to around ₹ 7.9 lakh in the 50:50 portfolio and ₹ 4 lakh in the all- debt or fixed income portfolio.

The short-term picture was different. Over one year, the equity portfolio was down by 3.6%, while the 50:50 portfolio gained 1.1% and fixed income returned 5.8%.

Also, the 50:50 portfolio outperformed fixed income across all periods except in the last 1 year.

Standard deviation measures how widely returns have fluctuated around their average. A higher standard deviation indicates greater volatility, while a lower figure indicates more stable return patterns.

*Source: UTI Balanced Hybrid Fund presentation, Data as on 30 June 2026

The equity portfolio consistently recorded higher volatility than the other two portfolios.

Over 20 years, equity had a standard deviation of 20.9%, compared with 10.3% for the 50:50 portfolio and just 3.2% for fixed income.

Risk-adjusted return puts returns and volatility together. In this analysis, it is calculated as:

A higher figure means the portfolio generated more return relative to the volatility recorded.

*Source: UTI Balanced Hybrid Fund presentation, Data as on 30 June 2026, Risk-adjusted return = CAGR ÷ Annualised standard deviation

Read the full article on LiveMint - Money ›

5News aggregated this summary from the outlet’s public feed. The full article, with all the context, is on www.livemint.com — the content belongs to LiveMint - Money.

More from LiveMint - Money

See all ›

More in Business

See all ›