Gold is once again dominating asset class performance charts in 2026, outperforming Indian equities, bonds, and several global indices amid rising uncertainty in financial markets. According to Axis Securities’ May 2026 Multi-Asset Scorecard, the precious metal has continued its strong momentum after delivering exceptional returns in 2025.

The report highlights how investors are increasingly turning toward safe-haven assets as volatility, geopolitical risks, and uneven global growth continue to pressure broader financial markets.

Gold returns

According to Axis Securities, gold delivered returns of 61.5% in calendar year 2025, making it the strongest-performing major asset class during the year. The momentum has continued into 2026, with gold generating 11.5% returns year-to-date (YTD), ahead of several domestic and international market benchmarks.

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The brokerage noted that gold had briefly lost its leadership position during the sharp equity rally seen in 2024. However, from October 2024 onward, investor preference shifted back toward defensive assets as concerns around global growth, inflation, and geopolitical tensions resurfaced.

“In 2025 as well as in April 2026, gold has emerged as the top-performing asset class,” Axis Securities said in its report.

How major asset classes performed:

Asset Class    2025 Return (%)    2026 YTD Return (%)

MCX Gold    61.5%    11.5%

Emerging Market Index    18.7%    6.7%

S&P 500    10.25%    4.7%

Nifty 50    6.7%    -8.2%

Midcap    5.4%    1.2%

Smallcap    -4.9%    1.7%

NSE G-Sec Composite    6.2%    -0.2%

The report also highlighted that Indian benchmark indices have continued to remain under pressure in 2026 despite signs of recovery in broader markets.

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While the Nifty 50 declined 8.2% in 2026 YTD, smallcap and midcap stocks showed relative resilience, gaining 1.7% and 1.2%, respectively. Axis Securities said this suggests that selective investor risk appetite is gradually returning after the steep correction witnessed since late 2024.

Underperformance of Indian equities

Another major trend identified in the report was the relative underperformance of Indian equities compared to global markets. Emerging Market indices and developed market benchmarks such as the S&P 500 delivered stronger returns than Indian large-cap equities during the period.

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According to the brokerage, elevated domestic valuations, slower earnings momentum, and foreign investor outflows have weighed on Indian market sentiment.

Gold’s outperformance also reflects its traditional role as a hedge during uncertain economic periods. Historically, investors tend to increase allocation toward gold during phases of:

• Market volatility
• Inflation concerns
• Currency weakness
• Geopolitical tensions
• Weak equity performance
• The report reinforces the importance of diversification and balanced asset allocation, particularly during periods when market leadership shifts rapidly between asset classes.

Axis Securities noted that no single asset consistently outperforms every year, making diversified exposure across equities, gold, debt, and global assets increasingly important for long-term investors.

With gold continuing to outperform while benchmark Indian equities remain volatile, wealth managers may increasingly recommend multi-asset portfolios to manage risk and improve long-term portfolio stability in 2026.

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Published on: May 7, 2026 6:06 PM IST