For equity bulls who scoffed at non-yielding assets, 2025 delivered a brutal lesson in humility. While the Nifty limped to a mere 10.5% return, with the broader market posting outright losses, gold surged 75% and silver exploded with a staggering 183% value, forcing shoppers to rethink asset allocation strategy.
Now, as 2026 dawns, the ask haunting every investor is: plug the necessary metals euphoria or bet on India’s equity comeback?
Dalal Boulevard’s star fund supervisor S Naren of ICICI Prudential AMC has warned that necessary metals are showing indicators of euphoria nonetheless Indian equity markets could well additionally just easy outperform most markets in 2026 after ending closing yr as the worst performer amongst predominant markets.
“We mediate at this point of time how to invest could well be in the originate of asset allocation and one can rob a dinky bit bit of better disaster towards equity in contrast with the build you were taking disaster in 2025 January, simply because in the closing one yr Indian markets contain underperformed most markets in the field,” Naren said.
With gold and silver using unparalleled rallies and equities nursing wounds, wealth managers are advocating measured approaches nonetheless with a tilt wait on toward stocks.
Nilesh Shah, Managing Director at Kotak Mahindra AMC, laid out his firm’s fresh stance: “About 55% is equity, about 20% is precious metal, and 30% is fixed income. Now these numbers could go 1% or 2% here or there, but this is broadly the average. I think this is a fair allocation for an average risk taker.”
His outlook on equities is evident, with midcap, largecap and smallcap expected to originate in that uncover. On necessary metals, Shah stays “positive but subject to central bank buying. The day the central bank sells, you also get out.”
Sunil Sharma, Chief Funding Strategist at Ambit World Personal Client, recommends a 12.5% allocation to gold and factual 4-5% to silver for realistic-disaster shoppers, with a dominant 72% equity allocation split across gargantuan (67.5%), mid (22.5%) and dinky cap (10%). The final 11% would plug into credit rating, InvITs, and significantly consist of a 6-8% allocation to REITs inside of the equity bucket, while avoiding duration.
Dhiraj Relli, MD & CEO of HDFC Securities, issued a stark warning about recency bias: “While asset diversification is an effective risk management strategy, investors should be cautious about chasing recent performance in asset classes like gold and silver, which have experienced significant rallies in recent months. Such one-sided moves can lead to exuberance and heightened volatility, making it prudent to avoid disproportionate allocations to these assets.”
Relli emphasized that gold and silver need to be considered “as portfolio insurance rather than primary growth drivers, where modest allocations help manage tail risks without creating concentration concerns.”
For youthful shoppers in the 30-40 age bracket, Sunny Agrawal of SBI Securities advocated a extra aggressive stance: 70% equity, 10% gold, 10% silver, and 10% bonds. “At this life stage, the individual typically has a relatively higher risk appetite and a longer investment horizon, which allows for greater exposure to equities,” Agrawal successfully-known, alongside with that “periodic rebalancing and review aligned with financial goals and market dynamics is critical.”
As necessary metals flash warning indicators of euphoria and Indian equities emerge from their yr of underperformance, the consensus is evident: diversification is now not always factual prudent nonetheless valuable.
(Disclaimer: Strategies, solutions, views and opinions given by the consultants are their contain. These carry out now not signify the views of The Financial Times)
