Why Your Portfolio Needs More Equity—Now, More Than Ever

As part of our work, we review asset allocations across dozens of client portfolios and one pattern is crystal clear.

Most investors are significantly under-allocated to equities!

Here’s what we typically see:

• 60 to 70% in Real Estate

• 10 to 20%in Debt

• Only 10 to 15% in Equities

This creates a serious mismatch between how wealth is compounding and how lifestyle costs are growing.

Real estate and debt may offer stability, but are unlikely to deliver more than 4 to 5% annual returns over the next decade. In contrast, lifestyle expenses: education, healthcare, travel etc. are compounding at 12 to 14%!

Portfolios today are simply not prepared for this reality.

Worse still, many investors continue to treat equity as a seasonal bets, despite it being the only asset class that has promise to deliver >14% compounding over decades.

In some cases, equity is the first asset sold to fund second homes or luxury cars. That’s exactly the opposite of what long-term wealth creation demands.

Equity is not optional. It is essential.

It must be a permanent and growing part of every portfolio.

Wealth creation via equities is about Patience, discipline, and consistency; these are the virtues that get inordinately rewarded over time.

This is not about chasing short-term returns. It is about preparing for long-term, real-world goals and building intergenerational wealth that outlasts us.

What should you do?

✔ Make equity a core allocation

✔ Think in decades, not years

✔ Continue your SIPs and top-ups without pause

✔ Trust your fund manager to navigate the market cycles

✔ Stay patient and let compounding do its magic

The greatest gains come quietly, over time. Let equity do its job.