Gold vs Equities vs 10-year G-sec vs real estate: Which asset class gave highest returns between 2016-2025?

Mid-caps and gold shine in the long run

Mid- and small-cap stocks have remained under pressure in 2025 due to an earnings slowdown and weak demand. However, these appear to be short-term setbacks, as these stocks have performed well over a 10-year period. Gold’s performance highlights the importance of asset allocation. Not only has it outperformed other asset classes in 2025, but it has also delivered robust annualised returns over the past decade. Equity mid-caps delivered the highest returns over the last 10 years, followed by gold, beating inflation by a huge margin. Inflation, as measured by Consumer Price Index, averaged 4.73%, on a compounded basis, from May 2015 to May 2025.

Real estate has only marginally outpaced inflation during the same period.

Source: Reuters-Refinitiv, NHB and ACE MF. *2025 data is YTD based on 8 July 2025 closing values. Other year returns are calculated between the first and the last trading day closing values. NHB Residex returns based on March values for each year. The latest NHB Residex data is available up to March 2025 quarter. 10-year returns in CAGR. Benchmarks used: Equity (Large cap) : Nifty 50, Equity (Mid cap) : 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.