By IndiaHub 
Precious metals lead, mid caps power equity returns in long run
Precious metals delivered strong gains in 2025, significantly outperforming equities and fixed income. Silver emerged as the standout performer, delivering exceptional returns on the back of its dual appeal as a safe haven and an industrial metal. Gold followed closely, reinforcing its role as a dependable store of value amid global uncertainty. Equity leadership shifted to large caps, driven by investor preference for balance-sheet strength and earnings visibility. Conversely, the small cap segment corrected sharply. Debt markets provided stable returns. Sovereign bonds benefited from rising risk aversion and equity volatility, while elevated money market rates and effective liquidity management by the RBI supported short-term debt performance.
Long-term performance
Gold and silver remained standout performers over the long term, offering strong returns and inflation protection. Equities across all market-cap segments contributed to wealth creation, albeit with varying levels of volatility. Real estate underperformed due to liquidity constraints and high transaction costs.
Source: Reuters-Refinitiv, NHB and ACE MF. *2025 data is YTD based on 16 December 2025 closing values. Other years’ returns are calculated between the first and the last trading day closing values. NHB Residex returns based on June values for each year. The latest NHB Residex data is available up to September 2025 quarter. Benchmarks used: Equity (Large cap): Nifty 50, Equity (Midcap): Nifty Midcap 100 Index, Equity (Small cap): Nifty Smallcap 100 Index, Silver : MCX Silver futures, Gold: MCX Gold futures, G-Sec 10-Yr: Crisil 10 Yr Gilt Index, Debt (Short-term): Crisil 91 Day T-Bill Index, Real estate : NHB Residex.