Indian households experienced a substantial growth in wealth in 2025, primarily due to a significant surge in gold prices, as per the HDFC Mutual Fund Yearbook 2026. The report revealed that household wealth surged by nearly Rs 117 lakh crore, approximately $1.3 trillion, throughout the year, providing families with a robust financial cushion. This surge marked the highest wealth increase from gold price appreciation in the past 25 years.
Gold prices escalated by about Rs 57,000 per 10 grams by December 15, 2025, following a previous increase of Rs 14,000 per 10 grams in 2024. This sharp uptick resulted in a positive wealth impact, with a noticeable rise in retail loans backed by gold. The year 2025 was characterized by a consolidation phase for Indian equity markets, with alternative assets like gold exhibiting remarkable strength, according to the report.
The report highlighted that gold emerged as a secure asset during a period of equity market pressure. However, India’s performance lagged behind global markets in 2025, leading to a reduction in its share of global market capitalization. The Nifty index underperformed global peers and emerging markets by approximately 25%, marking its weakest relative performance in nearly three decades. This adjustment brought India’s valuation premium closer to its long-term average.
Globally, gold, emerging markets, Europe, and the “Magnificent 7” stocks emerged as top performers in 2025. Conversely, oil, the US dollar, and Bitcoin were among the worst-performing assets during the year. The report also noted that after a period of strong growth, small- and mid-cap stocks exhibited weaker performance compared to large-cap stocks in 2025. While valuations moderated across market segments, large-cap stocks continued to offer better value.
HDFC Mutual Fund recommended that novice investors consider hybrid funds to mitigate portfolio volatility. These funds enable investors to leverage a blend of equity, debt, and gold, providing enhanced stability amid uncertain market conditions.
