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Optimize Your Portfolio: Equity, Debt, Gold Allocation for Current Market
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Moneycontrol•29-09-2026, 14:29
Optimize Your Portfolio: Equity, Debt, Gold Allocation for Current Market
- •Prashasta Seth, CEO, Prudent Investment Managers, suggests a portfolio allocation of 65–75% in equities, 15–25% in debt, and 5–10% in gold, tailored to individual risk profiles and goals.
- •Equity remains the primary driver for long-term growth, with a focus on quality businesses capable of 15-20% growth and disciplined valuations.
- •Within the equity portion, 60–70% can be allocated to large-cap companies, with the remainder in mid- and small-caps based on valuations and balance sheet strength.
- •Debt provides crucial stability during volatile equity markets and ensures liquidity for near-term financial needs, making its allocation dependent on expected returns and timing of fund usage.
- •Gold serves as a diversifier, reducing dependence on a single asset class during market stress, rather than being chased for recent performance gains.
Key Questions Answered
Experts suggest keeping around 65–75 percent in equities, 15–25 percent in debt, and 5–10 percent in gold, depending on an individual's risk profile, investment horizon, and financial goals.
Within the equity allocation, around 60–70 percent can be allocated to large-cap companies, while the rest is spread across mid- and small-caps based on valuations and balance-sheet strength.
Gold should be used primarily as a diversifier rather than for chasing returns, helping to reduce dependence on a single asset class during periods of market stress.
