The Nifty 500 outperformed gold and silver in nine of the 21 annual observations between 2006 and November 4, 2026. Data showed gold led in seven years and silver in five. Experts said investors should consider diversified equity funds alongside gold and silver to manage risks across different market cycles.
According to data compiled by Capitalmind Mutual Fund, covering 2006 to November 4, 2026, the Nifty 500 emerged as the best-performing asset in nine of the 21 annual observations. Gold led in seven years, while silver topped the rankings in five.
The findings highlight how investment performance changes across market cycles, with no single asset consistently outperforming the others.
Nifty 500 leads in annual performance
The Nifty 500 delivered its strongest annual return of 91% in 2009, recovering sharply after plunging 56% during the 2008 global financial crisis.
Equities also dominated in 2007, when the index gained 62.4%, and in 2014, when it returned 39.3%.
More recently, the Nifty 500 outperformed gold and silver in 2021 and 2023, delivering returns of 31.6% and 26.9%, respectively.
However, the index declined 3.8% in 2026 through November 4, underperforming gold.
Gold emerges as a defensive investment
Gold demonstrated relative resilience during periods of equity market weakness.
In 2008, when the Nifty 500 crashed 56%, gold delivered a positive return of 26.9%. Similarly, in 2011, gold gained 31.7% while equities declined 26.4%.
The yellow metal also outperformed in 2018, 2019, 2022 and 2024.
Gold recorded an exceptional 74.7% return in 2025, although silver performed even better.
In 2026 so far, gold has gained 6.5%, compared with losses of 3.8% in equities and 19.1% in silver.
Silver delivers spectacular gains but higher volatility
Silver's performance has been particularly dramatic.
The metal generated a staggering 167.3% return in 2025, significantly outperforming gold's 74.7% gain and the Nifty 500's 7.8% return.
However, silver subsequently declined 19.1% in 2026 through November 4, highlighting the risks associated with sharp price fluctuations.
Historically, silver also delivered strong returns in 2010 and 2020, gaining 71.4% and 44.4%, respectively.
Its performance reflects exposure to both investment demand and industrial consumption.
What should investors buy this Dhanteras?
The historical comparison suggests that choosing investments solely on recent performance could prove risky.
While equities led in more individual years, that does not automatically establish superior cumulative returns or lower risk.
Gold can provide diversification during equity market corrections, while silver offers exposure to precious metals and industrial demand but carries greater volatility.
Investors with long-term financial goals may consider diversified equity mutual funds alongside measured allocations to gold and silver ETFs.
For those buying precious metals on Dhanteras, staggered investments may help reduce the risk of entering after a sharp rally.
Ultimately, asset allocation should depend on investment horizon, financial goals and risk tolerance rather than which asset topped the previous year's return chart.