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 | Mint
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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