Should you keep a 100% equity portfolio? Here's what 20 years of data reveals about risk-adjusted returns
· livemint.com
A 100% equity portfolio delivered better long-term gains, but the picture changes when volatility enters the equation. Data spanning 20 years show how a fixed-income instrument and a 50:50 mix compare in terms of risk-adjusted performance, revealing a different side of portfolio 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 vola...