Mutual fund investors: Nifty 50 fell 7.1% in a year — could US equities, gold and debt cushion portfolio losses in 2026?

Mutual fund investors: Nifty 50 fell 7.1% in a year — could US equities, gold and debt cushion portfolio losses in 2026? (AI-generated image for representational purposes only)AI Quick ReadIf your portfolio is in the red over the last 1 year, you may be missing out on returns from other asset classes. A portfolio concentrated in Indian equities or Indian mutual funds would have faced a different outcome from one spread across US equities, gold, real estate, and debt.

Investors need to look beyond a single market or asset class to understand how returns vary across investment horizons. Here is how 5 asset classes have performed over the last 1 year and across longer periods.

*Source: FundsIndia’s Wealth Conversations October 2026 report, CAGR returns as on 30 September 2026

In the last 1 year, the Nifty 50 TRI declined 7.1%, while US equities returned 25%, gold gained 18%, real estate returned 8.5%, and debt delivered 5%.

For example, ₹1 lakh invested in a Nifty 50 index fund tracking the index would have fallen to around ₹92,900, assuming the index return and ignoring tracking error.

Now consider an allocation of ₹20,000 each across the five asset classes.

Overall, the diversified portfolio would be worth ₹1,09,880, generating a gain of ₹9,880, compared with a loss of ₹7,100 if the entire ₹1 lakh had been invested in a Nifty 50 index fund.

Market leadership changes with the investment horizon. Over 3- and 5-year periods, gold delivered the highest CAGR, while Indian equities and debt, respectively, recorded the lowest returns.

Over 10 and 15 years, US equities led, while real estate ranked last. Over 20 years, US equities again topped the list, while real estate and debt shared the lowest CAGR of 7.5%.

This shows that no single asset class leads across every period. Concentrating a portfolio can leave investors more exposed when the single asset class or market underperforms.

Diversification across asset classes can help spread risk, although it does not guarantee profits or prevent losses.

Mutual fund investors can consider diversifying their portfolios across Indian equity funds spanning different market capitalisations, international funds, debt funds, gold ETFs, and REIT (real estate investment trusts) funds, depending on their investment objectives and risk appetite.

Disclaimer: This is purely for educational/informational purposes and should not be taken as any sort of investment advice. Always consult a SEBI-registered advisor before making any investment decisions.

Sheetal Goel is a Content Producer at Livemint, where she covers corporate developments, personal finance, business trends, markets, and SEBI-related updates. She focuses on simplifying complex financial concepts and presenting them in a clear, reader-friendly manner, thereby helping audiences better understand investment trends, personal finance, and market developments. Her writing focuses on making finance more accessible to everyday readers while maintaining clarity, accuracy, and relevance. <br><br> She holds a degree in Economics (Hons.) along with an MBA in Finance, which has helped her develop a strong foundation in financial analysis, market understanding, and business reporting. Before joining journalism, she worked with finance and broking firms, where she closely followed market developments, investment strategies, and evolving industry trends. This practical exposure strengthened her understanding of financial markets. She has also written content across multiple formats and platforms, including YouTube, LinkedIn, and Instagram. <br><br> Over time, she has developed expertise in covering market-linked stories, investor-focused topics, and regulatory updates in a simplified yet informative style. She also enjoys reading and listening to Hindi poetry, reflecting her appreciation for literature and creative expression beyond the world of markets and numbers.

Catch all the Instant Personal Loan, Business Loan, Business News, Money news, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.