Luthria Urges 50:50 Split: Arbitrage Fund & Nifty SIP
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- Avinash Luthria recommends a 50:50 allocation for lump‑sum investors: half into an Arbitrage Fund and half into a 12‑month SIP of a Nifty 50 Index Fund.
- FundsIndia reports Indian equities have delivered annualised returns of 13.2% (10 yr), 11.3% (15 yr) and 11.4% (20 yr), outpacing real‑estate (5.6‑7.9%) and debt (≈7.5%).
- US equities have outperformed, generating 19.4% (10 yr), 19.8% (15 yr) and 15.2% (20 yr) annualised returns, multiplying capital up to 17× over two decades.
- Gold has posted 14.6% annualised returns over 20 years, multiplying investments >15×, but still lagging US equities; current gold prices are at record highs, limiting entry points.
Why it matters: Retail investors with a bonus can lock half of it in a low‑risk Arbitrage Fund to cushion volatility while the other half rides a Nifty 50 SIP, leveraging the 11‑13% long‑term equity returns that have historically outperformed 6‑8% deposits.
