Asset class performance: Gold leads in 2026 market turbulence; 10-year data underscores benefits of diversification

The annual returns are ranked for multiple asset classes across equity, debt, precious metals and real estate. This map shows that no single asset class reigns supreme. Hence, diversification helps.

Precious metals and midcaps stand out over the long run

Gold continues to shine in 2026 as investors prioritise capital preservation over aggressive return-seeking amid global volatility, geopolitical risks, and concerns over economic growth. While silver remains the second-best performer, the widening return gap reflects softer expectations of industrial demand in a cautious macro environment.

Fixed income shows a mixed trend. Short-term debt has delivered modest positive returns, benefiting from stability and low volatility. In contrast, 10-year government securities generated marginally negative returns, weighed down by rising yields and interest-rate uncertainty.


Equities across market capitalisations have struggled. Large, mid, and small-cap segments have all posted negative returns, with large-caps correcting more sharply, likely due to valuation compression and persistent foreign investor outflows.

Long-term performance

Over the past decade, silver has emerged as the best-performing asset, supported by periodic supply-demand imbalances. Gold has reinforced its role as an effective hedge against macroeconomic uncertainty.

Equities have also generated strong longterm returns, particularly in the mid-cap segment, underscoring the growth potential of mid-sized companies. Such companies benefited from scalability and sustained earnings expansion. Fixed income, by contrast, reflects its conservative nature focused primarily on capital preservation.

Source: Reuters-Refinitiv, NHB and ACE MF. *2026 data is YTD based on 21 April 2026 closing values. Other year's returns are calculated between the first and the last trading day closing values. The latest NHB Residex data is available up to December 2025 quarter. For 2026, the data is yet to be released and therefore, real estate returns are not included for 2026. 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.