2026 Portfolio Rebalancing: How Much Should You Allocate To Gold, Equity, Debt, Real Estate?

After a year of gold and silver's shimmering returns stealing the spotlight, and equities being largely disappointing, many investors are entering 2026 with a familiar dilemma: should portfolios be reshuffled to chase what worked, or should discipline win over recent returns?

According to Harshvardhan Roongta, CFP at Roongta Securities, this is precisely the wrong moment to let performance envy drive decisions. "Asset allocation cannot change purely because something has done well in the last one year," he says. "That is one mistake retail investors keep repeating."

In 2025, the Sensex delivered roughly 9–10% returns, mid-caps about 5–6%, while small-caps slipped into negative territory. In contrast, gold surged nearly 80% and silver over 200%, creating a sharp temptation to rotate money out of equities.

But Roongta warns that markets move in cycles. "Equity can give no returns for three or four years, and then deliver most of its gains in just one or two," he says. Investors who keep jumping queues between asset classes risk missing that payoff.

For 2026, Roongta recommends sticking to a goal-based asset mix, not a performance-based one.

• Precious metals (gold and silver): 10–15%

• Equity and debt: determined by time horizon

This allocation is strictly for financial investments and excludes jewellery. "Anything beyond this means you are overexposed to a defensive asset," he cautions.

For investors with an 8–10 year horizon, a 60% equity, 30% debt, 10% commodities mix works well.

For shorter horizons of 2–3 years, the structure should flip to 30% equity, 60% debt, with commodities unchanged.

Within equities, first-time investors should keep it simple: large-cap and mid-cap funds only, avoiding small-caps until they understand volatility better.

Direct property remains illiquid and expensive, but listed real estate is gaining attention. Mohit Gang, co-founder and CEO of Moneyfront, describes REITs as "owning commercial real estate in a financial, paper format."

He suggests treating REITs as part of the fixed-income bucket, not equity. "You play REITs for rental yields and income stability, not capital appreciation," Gang says.

A 10% allocation, and at most 20% for conservative investors, is sufficient for most portfolios.

Both experts agree on one thing — do not design 2026 portfolios using the rear-view mirror. They add that chasing last year’s winners, whether equities in bull runs or commodities after sharp rallies, almost always leads to disappointment.