Gold Surge Adds Rs 117 Lakh Crore to Indian Household Wealth in 2025: Report

New Delhi - Indian households witnessed a sharp rise in wealth during 2025, largely driven by a strong rally in gold prices, according to a new report.

Data from the *HDFC Mutual Fund Yearbook 2026* shows that household wealth increased by nearly Rs 117 lakh crore, or about $1.3 trillion, over the calendar year, providing families with a significant buffer for consumption and spending.

The fund house noted that this marked the highest wealth creation from gold price appreciation in the last 25 years.

Gold prices surged by around Rs 57,000 per 10 grams in 2025 up to December 15, following a rise of Rs 14,000 per 10 grams in 2024. This sharp appreciation has led to a strong positive wealth effect, with retail loans against gold also registering a noticeable increase.

According to the report, while 2025 was largely a year of consolidation for Indian equity markets, alternative assets—particularly gold—delivered exceptional performance. Gold clearly emerged as a preferred safe-haven asset amid pressure in equity markets.

India underperformed global markets during the year, resulting in a decline in its share of global market capitalisation. The Nifty index lagged global peers and other emerging markets by around 25 per cent, marking its weakest relative performance in nearly three decades. However, the correction has helped narrow India’s valuation premium closer to its long-term average.

Globally, gold, emerging markets, European equities and the so-called “Magnificent Seven” stocks ranked among the top performers in 2025. In contrast, oil, the US dollar and Bitcoin were among the weakest-performing assets.

The report also highlighted that after several years of strong gains, small- and mid-cap stocks underperformed large-cap stocks in 2025. Although valuations have moderated across segments, large-cap stocks currently offer relatively better value.

Nearly 30 per cent of small-cap stocks are trading at least 30 per cent below their 52-week highs, the report added.

In terms of investment strategy, HDFC Mutual Fund advised first-time investors to consider hybrid funds to reduce portfolio volatility. Such funds provide exposure to a mix of equity, debt and gold, offering greater balance during periods of market uncertainty.

— IANS