India, Feb. 27 -- As most investors, especially the smart and savvy ones, know from experience, making profits depends on the chemistry of investments. This is exactly what a recent study, 'Chemistry of Investing,' tries to examine. It looks at how the various permutations and combinations of debt, equity, and bullion influence portfolio-related risks, and returns. Do not take it as a search for an ideal portfolio. Instead, consider it to be an exercise that sheds light on the "structural aspects" on how to design a portfolio that suits the risk-and-return appetite of an investor. It is more about what can offer 'You' the best outcome.

In search of the best design, the study calculates returns from a risk-free portfolio to the riskiest o...