Does adding equity always increase risk? What a 25-year study shows

A 25-year study has found that adding equity to a portfolio does not always increase risk. In fact, some combinations of equity, debt, and gold have delivered higher returns without a corresponding increase in portfolio volatility. This suggests that investors may be able to manage risk and potentially earn higher returns by strategically allocating their assets. The study's findings could have implications for investors seeking to balance risk and return in their portfolios.

Why it matters

Some equity-debt-gold combinations have delivered higher returns without a proportionate increase in portfolio volatility. This could lead to more investment in these combinations, potentially increasing market confidence.

Market impact

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