INCOME TAX17 Sept 2026
One bad day for the market and your whole portfolio tanks? Here's what you can do to spread the risk
Owning many stocks does not always mean you are diversified. A WhiteOak Capital Mutual Fund study found Indian equity and US equity move together most, with a correlation of 0.37. Indian equity and gold move most differently, at -0.43. So if all your holdings fall together, adding more of the same may not help. Check whether your assets truly behave differently.
Key Statutory Highlights
- Indian equity and US equity have the highest correlation at 0.37, so they often tend to move in the same direction during a broad sell-off.
- Indian equity and gold have the lowest correlation at -0.43, which means they have historically tended to move in opposite directions.
- Gold and US equity have almost no correlation at 0.01, so a fall in US stocks gives little indication of what gold will do.
Actionable Advice for Taxpayers / Founders:Look at your own portfolio and check whether your holdings actually behave differently when markets fall; if they all move together, consider adding asset classes like gold, debt, or US equity, ideally after speaking with a registered investment adviser.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
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