Asset Classification & Allocation
Understand the four broad asset classes, how they've performed historically in India, and see how your current mix compares to a typical allocation for your risk profile.
Why classify your assets?
Equity, Debt, Property and Gold tend to respond differently to the same economic conditions – when one is under pressure, another often holds steady or gains. Spreading money across asset classes (rather than concentrating in one) is one of the simplest ways to reduce the impact of any single market swing on your overall wealth, while still giving each class room to do what it does best over the long run.
Historical returns by asset class (since ~1979-81)
Figures are broad long-term averages, not guarantees of future performance, and not personalised advice.
| Asset Class | Long-Term CAGR | Period | Source |
|---|---|---|---|
| Equity | ~15% | 1979–2025 (44 yrs) | BSE Sensex historical data (Sensex's base year is 1979 – the earliest long-term Indian equity benchmark available) |
| Debt | ~8–9% | 1981–2026 (45 yrs) | RBI / bank FD rate history (10–13% through the 1990s, ~6–7% currently) |
| Property | ~9–10% | Long-term estimate | Broad market estimate – no single official index predates NHB RESIDEX (launched 2007); varies significantly by city |
| Gold | ~10% | 1981–2026 (45 yrs) | Historical gold price data (~Rs 1,700/10g in 1981 to ~Rs 1,12,000/10g today) |
Compare your allocation
Pick your risk profile and enter your current allocation to see how it compares.
Not sure? Take the 1-minute Risk Quiz. Log in to remember this choice on your account.
Total: % (must total 100%)
Your mix vs. a typical investor
This comparison is for general education only and is not personalised investment advice. Please consult a qualified professional before making investment decisions.
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