Do investors get asset allocation wrong? The right mix to turn Rs 25,000 SIP into Rs 1 crore

Indian investors are pouring record sums into equities, but the biggest wealth creators over the past year have been elsewhere. The Nifty slipped 2% in the last 12 months, while gold delivered 46.7% returns and silver surged 47.1%.

“Precious metals have quietly emerged as the wealth creators even as equities have struggled,” said Jahol Prajapati, Research Analyst at SAMCO Securities.

Yet, equity inflows remain relentless. According to AMFI, equity scheme inflows touched a record Rs 42,702 crore in July 2025, the highest ever. SIP flows also hit all-time highs. Investors continue to believe that equities are the best way to build wealth.


This comes at a time when the Nifty has failed to generate positive returns, underlining the gap between behavior and performance.

Gold and silver, in contrast, remain under-owned in formal portfolios. Out of India’s Rs 77 lakh crore mutual fund assets, gold ETFs account for just Rs 66,660 crore and silver ETFs for Rs 22,160 crore. Together, that is only 1.15% of the industry.

So do Indians get asset allocation wrong? Not completely. They hold more gold than most central banks. What they often miss is balance.

"Too much of their wealth lies idle, too little works in productive assets. The smarter approach is to align allocation with goals, not fads. Equities for growth, gold for resilience, fixed income for safety. And let compounding do its quiet work," said Rishabh Nahar, Partner and Fund Manager at Qode Advisors PMS.

Indian women collectively hold nearly 24,000 tonnes of gold, about 11% of the world’s total above-ground reserves. However, the problem lies with productivity. Physical gold is idle. It earns no yield, is hard to liquidate, and sits outside the financial system. ETFs and sovereign gold bonds make the asset more accessible, but their adoption is still limited.

So what is the right mix to turn a Rs 25,000 SIP into Rs 1 crore?

Analysts say it depends on age, income, and goals. But history shows that equities have been the engine of wealth creation across the world. At the same time, engines can overheat, this is where diversification helps. In an inflationary world where central banks are printing money, holding some gold and commodities is a smart hedge. They provide balance when equities stumble.

This also ties into the dream of turning a Rs 25,000 SIP into Rs 1 crore. "A common framework is 60 to 70% equities for long-term growth, 10 to 15% fixed income for stability and 10 to 15% gold and commodities as an insurance policy. The remainder in cash or alternatives depending on liquidity needs," Nahar said.

The proportions could change with life stages, but the principle remains the same: let equities compound, while uncorrelated assets provide resilience.

Coming to the time period, at an annualized return of 12%, such a SIP can grow to Rs 1 crore in about thirteen and a half years. Raise the monthly investment to Rs 40,000, and the target can be met in a little over ten years. Push it further to Rs 75,000, and the journey can be completed in just seven years.

But experts point out the real point is not the number. "Inflation has already eroded the magic of Rs 1 crore. The bigger goal is financial freedom. That comes not from chasing returns but from discipline. Savings, patience, and balance matter more than timing."

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)