Diversifying investments across real estate, equity, debt, gold is a must for long-term wealth creation shows comparison of returns over 11 years
Volatility lifts gold, sinks small caps in 2025
Global uncertainties, rising demand from world central banks and higher equity market volatility led to a substantial jump in gold prices in 2025. Moreover, its low correlation to risky assets makes it a superior option for risk diversification. On the other hand, the mid cap and small cap benchmarks performed the worst among asset classes in 2025 year-to-date. Concerns of high valuations, export growth uncertainties and pressure on profit margins due to a tepid demand environment led to their poor performance.
Based on the average and standard deviation of returns over the last 11 years, gold has a better risk-to-reward ratio compared to silver. In equities, the large cap segment has a better risk-toreward ratio compared to the mid and small cap segments.
