Equity vs gold vs debt: Where to do highest allocation for best portfolio results? Check 2026 and last 10-year winners

Balanced portfolios lead 10-year rankings

Portfolios with higher allocations to debt and gold have led the rankings in 2026 so far, while equity-heavy portfolios have lagged. The wide gap between the best- and worst-performing allocations highlights the contrasting roles played by the three asset classes during the year.

Gold has been the standout performer, supported by heightened geopolitical tensions and investor demand for safe-haven assets. Equities, in contrast, have faced headwinds from foreign institutional investor outflows, elevated valuations, rupee weakness, and uncertainty surrounding global trade and crude oil prices.

Debt has emerged as a relatively attractive asset class, benefiting from investors’ preference for stability. The trend reinforces the value of diversification. Investors who spread their investments across equity, debt, and gold were better positioned to navigate the market environment than those relying predominantly on equities. Interestingly, the 20% equity portfolio, which is leading so far in 2026, has been in the bottom three in 5 of the past 10 years; it’s also the worst-performing basket in the 10-year period.


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Long-term performance

Over the past decade, balanced portfolios have delivered the strongest returns, reinforcing the case for diversification across asset classes. Portfolios with the highest equity allocations have not claimed the top spot despite benefiting from long-term market appreciation. Instead, allocations combining equity with debt and gold have fared better, highlighting the complementary role these asset classes play in portfolio construction.

Source: ACE MF. *2026 data is YTD based on 13 October 2026 closing values. Other years’ returns are calculated between the first and the last trading day closing values. Numbers in brackets are the weighted average return (or portfolio return) of the respective investment allocation. 10 year weighted average return is based on compounded returns of the respective assets. Benchmarks used: Equity: Nifty 500 Index, Debt: Crisil Composite Bond Index, Gold: Nippon India ETF Gold BeES.