Diwali 2025: Gold vs Equities - Balancing Protection and Growth
As Diwali approaches, investors are considering their portfolios. Gold has been the top performer over the past 15 years, but equities offer long-term growth potential. Balancing both can provide protection and prosperity.
Gold's cultural significance during Diwali and Dhanteras boosts seasonal demand, contributing to its strong performance. Central banks worldwide, including those of China, Russia, and India, have been actively purchasing gold. Over the past 15 years, an annual Diwali investment of Rs 1.5 lakh in gold has grown to Rs 4.47 lakh, outpacing the Nifty's growth to Rs 3.72 lakh.
Equities, however, remain crucial for long-term wealth creation. They offer higher growth potential and the ability to outpace inflation. While gold has maintained its lead over shorter horizons of five and ten years, equities' long-term potential is undeniable.
For stability, investors may prefer allocating more to gold. But for long-term wealth creation, equities should be prioritized. A balanced approach, combining both, is often ideal. It allows investors to hedge against volatility while driving growth. However, individual goals and risk appetite should guide investment decisions, as past performance does not guarantee future results.
