Gold leads with robust 41 pc return in FY25 to date, outperforms all asset classes

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Mumbai, May 12 (IANS) Gold has emerged as the best-performing asset class in FY25, delivering a remarkable return of 41 per cent in USD terms and 33 per cent in INR (rupee) terms, according to a National Stock Exchange (NSE) released on Monday.

In a year marked by global uncertainties and shifting investment trends, gold’s safe-haven appeal surged, making it the top choice for investors worldwide, including in India.

The NSE ‘Market Pulse report for April’ highlights that global gold demand rose to a 15-year high of 4,974 tonnes, driven by a 25 per cent increase in investment demand.

Central banks across the world continued their buying spree, purchasing over 1,000 tonnes of gold for the third consecutive year — more than double the annual average seen between 2010 and 2021.

Reflecting this global trend, the Reserve Bank of India (RBI) also increased gold’s share in its forex reserves to 11.4 per cent in 2024, up from 6.7 per cent in 2014.

Despite gold’s outperformance this fiscal year, the NSE report pointed out that over a longer period of 20 years, Indian equity markets have given higher returns.

The Nifty’s price return of 13 per cent and total return of 14.4 per cent have outpaced gold’s 10.5 per cent return over the same time frame.

Investor participation in India continues to grow at a rapid pace. NSE’s total registered investor base reached 11.3 crore in March 2025, with 2.1 crore new investors added in FY25 alone — the highest in the last five years.

The monthly average of investor additions has more than doubled since FY21. States like Uttar Pradesh, Maharashtra and Andhra Pradesh saw the largest increase in new investors, said the report.

On the trading front, equity cash market turnover saw impressive growth. The turnover jumped from Rs 90 lakh crore in FY20 to Rs 281 lakh crore in FY25, growing at a compound annual rate of 26 per cent.

The average daily turnover in the cash market reached a record Rs 1.1 lakh crore.

While index options turnover dipped slightly, Nifty’s premium turnover surged by 37 per cent, now commanding nearly half the market share in index option premiums.

–IANS

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