I missed the Gold Rally. But what next?

If you’ve checked your portfolio recently and felt that familiar pinch —
“Gold did so well… I should’ve had more” — you’re not alone.

Gold has been everywhere lately. Headlines. Charts. Family conversations.
And in India, the rally felt even louder — helped by two forces moving together: rising global gold prices and a weakening rupee.

At the same time, equity markets have tested patience.

For almost 15 months now, markets haven’t really rewarded investors. They’ve moved sideways. Corrected emotions more than prices. Created doubt.

So let’s pause for a moment — without regret, without FOMO — and look at this with clarity.

Because context changes everything.

Why Gold Ran Up — And Why It Always Feels Sudden

Gold never creeps up quietly.

It stays dormant for years…
and then moves sharply in short, concentrated bursts.

This rally wasn’t accidental. It was driven by a familiar cocktail:

• Global uncertainty — interest rates, geopolitics, sovereign debt

• Central banks accumulating gold at record pace

• And for Indian investors, rupee depreciation amplifying returns in INR terms

Gold did exactly what it’s designed to do.

It reacted fast.
It protected value.
And it reminded everyone why it exists.

That’s gold’s role.
Not compounding. Not predictability.
But insurance when uncertainty spikes.

And historically, once the burst plays out, gold often cools — sometimes for long stretches.

This pattern isn’t new. We just forget it during rallies.

There have been months and months of sideways/under-performance of gold from time to time. This is what past 20 years shows.

Equity’s “Silent Phase” — Misunderstood, Not Broken

Now let’s talk about the asset class everyone is questioning.

Yes, equity has been frustrating.

The last 1–1.5 years have delivered:

• High valuations needing time to normalise

• Earnings catching up to prices

• Markets consolidating instead of celebrating

Emotionally, this phase feels like stagnation.

But zoom out — and the story changes completely.

Over a 5-year horizon, equity has quietly done what it has always done:
built wealth through compounding.

Across flexi-cap, multi-cap, and large & mid-cap categories, several well-managed funds continue to show 15–25%+ annualised returns over five years — even after this dull phase.

This is how equity works:

• Long stretches of boredom

• Intermittent discomfort

• Short bursts of excitement

• And meaningful wealth creation only for those who stay through the dull parts

Equity doesn’t reward impatience.
It rewards endurance.

Nifty 500 performance over past 20 years again demonstrates there are consolidation and then momentum. We just completed 16 months of consolidation. We may consolidate for another 2-3-5 months, however, next momentum could be in equity market.

The Truth Most Investors Learn Late

In equity investing,
two years of pain is not an exception — it’s normal.

Every long-term equity journey includes phases where:

• Returns disappoint

• Comparisons hurt

• Another asset suddenly looks “smarter”

These phases are not signals to exit.
They are the cost of long-term compounding.

Gold preserves wealth.
Equity creates it.

Different tools. Different jobs.

Confusing their roles is where frustration begins.

“What about Multi-Asset?”

Having exposure to multi-asset funds means:

• You weren’t betting everything on one narrative

• Your portfolio had balance built into it

• Emotional stress was reduced — even if returns felt uneven

Could gold allocation have been higher?
In hindsight — always.

But hindsight is not a strategy.

What is a strategy is designing a portfolio that can survive multiple market moods without forcing emotional decisions.

And that’s exactly what diversification is meant to do. Diversification is your friend when you want lesser risk.

The Bigger Lesson (Worth Repeating)

No asset class wins all the time.

• Gold moves in momentum-driven bursts

• Equity moves in cycles of patience and payoff

• Debt offers stability, not excitement

Chasing last year’s winner is how long-term wealth quietly erodes.

Staying aligned to your plan — even when it feels boring — is how it gets built.

So… What Should You Really Be Asking?

Not:

• “Did I miss the rally?”

But:

• “Is my portfolio aligned with my goals, time horizon, and risk appetite?”

Gold deserves a place.
Equity deserves patience.
And your plan deserves consistency.

What Next?

If you want

• Stable returns: Go with Multi-Asset / Hybrid Funds (10-12%)

• Higher returns: Go with Equity Funds (14-20%)

• Fixed Returns: Fixed Deposits / NCDs (7-9%)

If you missed the gold rally, don’t punish yourself for it.

Gold will have quiet years again.
Equity will have its moment again.
And investors who stay disciplined through both will quietly win.

That — more than any rally — is how real wealth is built.

Let’s build real wealth!

Warm regards,

Tejas Lakhani