Gold kept in the house becomes ‘treasure’
The year 2025 has proved to be a mixed year financially for Indian families. On one hand, investors felt disappointed in the stock market, while on the other hand, the gold kept in the house silently increased the wealth. According to the latest report of HDFC Mutual Fund Yearbook 2026, the wealth of Indian households has increased by Rs 117 lakh crore ($ 1.3 trillion) in 2025 alone due to the rise in gold prices. This figure is the biggest earning from gold in the last 25 years. This huge profit has given the common man a huge ‘buffer’ to spend. The report shows that the cases of taking loans against gold have also increased.
Gold became ‘superhero’, stock market remained sluggish
Last year i.e. in 2025, the price of gold increased by about Rs 57,000 per 10 grams. Earlier in 2024 also, gold had become costlier by Rs 14,000. The boom of these two years has strengthened the balance sheets of Indian households. On the contrary, the performance of the stock market remained lackluster. Nifty 50 gave almost 25% lower returns compared to its global peers and emerging markets. This was the worst relative performance of the Indian market in the last three decades. In the report it has been called a period of ‘consolidation’ or stagnation. While gold, European and US markets shone, oil, dollar and bitcoin performed the worst in 2025.
Money stuck in small shares
In the last few years, small and mid-cap stocks had made a great run but in 2025 the situation changed. Large-cap stocks won this time. What is worrying is that about 30% of small-cap stocks have fallen 30% or more from their 52-week high. In such a situation, HDFC Mutual Fund has advised new investors to choose the path of ‘Hybrid Funds’ instead of investing money directly in shares. With this, one gets the benefit of all three asset classes – equity, debt and gold and the risk also remains less.
The only advantage is in becoming a horse for a long race.
A very interesting figure has been presented in the report regarding the fear of loss in the stock market. If you invest money in Sensex and do not withdraw it for 15 years, then the probability of loss becomes 0%. That is, the formula “Think Long-Term” is most effective. At the same time, if the perspective is only for one year, then according to statistics the possibility of loss is up to 26%. This risk reduces to 7% on investment of 5 years and only 1% on investment of 10 years. Therefore, it is wise to stick to disciplined investments (SIP) instead of panicking in the current market fluctuations.
Will gold make big money even in 2026?
According to Ross Maxwell of VT Markets, gold prices in 2026 will not be determined by speculation, but by factors like interest rates and inflation. If interest rates fall or government debt increases, the demand for gold will increase. At the same time, experts believe that in an uncertain environment, gold will prove to be a more safe and reliable investment than silver.