Gold outperforms Nifty 50 in Q1 2025 returns

In the first quarter of 2025, both the Nifty 50 and BSE Sensex showed significant weekly gains, rising around 4.45% and 4.35%, respectively. However, these gains are not enough to match the performance of gold and silver during the same period. While Nifty 50 and BSE Sensex have year-to-date losses of 1.70% and 2.15%, gold prices surged about 15%, and silver rose around 12.65%. Investment experts suggest that gold and Nifty 50 are popular options for Indian investors. Gold is viewed as a safe asset during uncertain times, while the Nifty 50 represents broader economic growth. The choice between the two depends on an investor's goals and risk tolerance. Five key reasons can help investors decide between gold and Nifty 50 for long-term investment. First, gold has provided average annual returns of 8-10% over two decades. Nifty 50, on the other hand, has historically delivered higher returns of 12-15%. For growth-focused investors, Nifty appears to be a better choice. Second, both assets serve as hedges against inflation. However, equities in the Nifty generally outperform inflation more effectively than gold. Third, gold is considered less volatile than stocks and may provide stability during economic downturns. For those who can tolerate risk, Nifty might offer higher returns over time. In terms of liquidity, Nifty stocks and index funds can be traded easily, while physical gold often faces challenges like purity checks. Finally, a balanced portfolio combining both assets is ideal. Nifty can drive growth, while gold can hedge against risks. Currently, financial experts suggest maintaining an 80:20 ratio in favor of equities and adjusting this based on market conditions. Investors should consider their financial goals and seek expert advice before making decisions.