Investment returns: How different asset classes performed in 2025
Subscribe to enjoy similar stories. Dear reader, as 2025, a year of global tumult and volatility, rolls by, Mint's reporters and columnists look around the corner on what is coming in 2026—to help you know what to expect and prepare for it. Tell us what you think at [email protected]. Returns from investments are the best indicator of how various asset classes have performed.
And that helps investors determine which asset class is a winner and which ones to avoid. While the winners among asset classes keep rotating every year, the absence of any such pattern over the past 10 years reinforces the importance of asset allocation in building a balanced portfolio. Here’s a quick look at the performance of different asset classes in 2025.
Gold was the standout performer of 2025, delivering a remarkable 70% return—its strongest show in more than a decade. The returns data is based on Nippon India ETF Gold BeES' returns as of 12 December 2025. The gold rally was supported by a softer US dollar and an unsettled global environment marked by prolonged geopolitical conflicts and trade tensions.
But the momentum ran deeper. Central banks, particularly in emerging markets, continued to accumulate gold at a record pace as part of a broader diversification away from the dollar. Expectations of a turn in the US interest-rate cycle further strengthened gold’s appeal by compressing real interest rates and lowering the opportunity cost of holding the metal.
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