New Delhi, Oct. 16 -- Indian investors looking to reduce stock market risk face a familiar dilemma. Portfolios heavily invested in equities can generate strong long-term returns, but sharp market corrections can erode wealth and test investors' patience. Adding debt and gold can cushion some of those losses, though it may also limit gains when equities rally.

A backtest by Zerodha Varsity examined whether Ray Dalio's All Weather portfolio, designed to perform across different economic conditions, could offer a smoother investment journey for Indian investors. The analysis compared the strategy with a traditional 60:40 portfolio, which allocates 60% to equities and 40% to debt, as well as an all-equity Nifty 500 total returns index (TRI) ...