Indian equities have been the worst-performing asset class in 2026 so far, while US stocks and gold have delivered double-digit returns. The divergence highlights how differently investors would have fared across markets and asset classes over the first nine months of the year.
According to a research presentation by Edelweiss Mutual Fund, Indian equities, represented by the NSE 500 TRI, declined 6.81% between January and 30 September 2026. In contrast, US equities, represented by the S&P 500 TRI, gained 12.75%, while domestic gold prices rose 11.56%.
The gap between Indian and US equities stood at 19.56 percentage points. Gold also outperformed Indian equities by 18.37 percentage points over the same period.
US equities and gold lead the performance chart
US equities delivered the highest return among the eight tracked in the presentation, followed by gold. Their performance contrasted with the decline in Indian equities and the relatively modest gains from fixed-income investments.
An investment of ₹1 lakh in US equities at the beginning of the year would have grown to approximately ₹1.13 lakh by 30 September, before taxes and investment costs. The same amount invested in gold would have grown to ₹1.12 lakh.
By comparison, ₹1 lakh invested in Indian equities would have fallen to approximately ₹93,190.
|
Asset class |
2026 Returns |
Value of ₹1 lakh |
| US equities | 12.75% | ₹1,12,750 |
| Gold (domestic price) | 11.56% | ₹1,11,560 |
| Short-term bonds | 3.57% | ₹1,03,570 |
| Corporate bonds | 2.47% | ₹1,02,470 |
| Government securities (G-Sec) | 0.67% | ₹1,00,670 |
| China equities | -1.38% | ₹98,620 |
| Silver (domestic price) | -3.25% | ₹96,750 |
| Indian equities | -6.81% | ₹93,190 |
| Source: Edelweiss Mutual Fund, using Bloomberg data. Returns are through 30 September 2026. Investment values are illustrative and exclude taxes, fees and transaction costs. | ||
Debt investments deliver modest positive returns
Fixed-income investments remained in positive territory, although their returns were considerably lower than those of US equities and gold.
Short-term bonds delivered a return of 3.57%, the highest among the three debt categories tracked. Corporate bonds returned 2.47%, while government securities gained 0.67%.
An investment of ₹1 lakh in short-term bonds would have grown to ₹1.04 lakh over the period, compared with approximately ₹1.01 lakh in government securities.
The figures show that preserved positive returns over the period, but their gains fell short of those generated by US equities and gold.
Silver and Chinese equities also decline
Not all international investments or precious metals delivered positive returns.
Chinese equities, represented by the Hang Seng TRI, declined 1.38% through September. Silver prices in India fell 3.25%, making silver the second-worst performer among the eight asset classes in the comparison.
The contrast between gold and silver is particularly notable. While domestic gold prices rose 11.56%, silver declined over the same period, creating a return gap of 14.81 percentage points.
For investors comparing the two precious metals, the figures underline that their returns can diverge significantly even within the same period.
What the comparison means for investors
The performance ranking through September is clear. US equities led the eight asset classes, followed by gold, while Indian equities recorded the steepest decline. Short-term bonds, corporate bonds and government securities delivered smaller positive returns, while silver and Chinese equities posted losses.
The figures also illustrate how across asset classes can produce a different portfolio outcome from investing exclusively in one market. An investor holding a combination of Indian equities, international stocks, gold and debt would have experienced a different result from someone invested entirely in Indian equities.