Equity vs gold vs silver: Which asset class delivered the most returns in H1 FY27? Here’s what data shows
Small-cap equities emerged as the best-performing major asset class in H1 FY27, with the Nifty Smallcap 250 gaining 23% between April and September 2026. The Nifty Midcap 150 rose 13%, while the Nifty 50 delivered a modest 2% return. This put small caps 21 percentage points ahead of large caps and 10 percentage points above mid caps.
Precious metals, meanwhile, moved in the opposite direction. Gold declined 10% during the six-month period, while silver fell 15%. The reversal was stark compared with H1 FY26, when gold gained 23% and silver surged 36%. Gold’s performance therefore swung 33 percentage points year-on-year, while silver’s shifted by 51 percentage points, from a 36% gain to a 15% decline.
Small caps lead the equity market
The performance gap within equities was significant. Small caps delivered a 21-percentage-point higher return than the Nifty 50 during the six-month period, while mid-caps were also ahead of large caps by 11 percentage points.
Mutual fund flows also show continued investor interest in the equity categories that outperformed in H1 FY27. Small-cap funds attracted ₹7,973 crore in August, while mid-cap funds received ₹6,989 crore, according to data from the Association of Mutual Funds in India (AMFI). Together, the two categories accounted for nearly half of the ₹29,328 crore net inflow into equity mutual funds during the month.
Flows into gold ETFs were more uneven. Gold ETFs saw a net inflow of ₹3,443 crore in June after recording a net outflow of ₹725 crore in May, according to AMFI data. The contrasting flow trends suggest that while investor interest in precious metals remained significant, equity-oriented categories, particularly small- and mid-cap funds, continued to attract substantial domestic mutual-fund flows during the period.
Gold and silver reverse H1 FY26 gains
Precious metals had a very different run in the previous financial year’s first half. Gold’s 23% gain and silver’s 36% rise in H1 FY26 put both ahead of equities at the time. Their H1 FY27 performance therefore represents a complete reversal in the asset-class pecking order.
One factor affecting precious metals during H1 FY27 was the sharp rise in crude prices. Brent crude averaged about $92 a barrel during the first half, compared with $67 in H1 FY26. The increase affected inflation and interest-rate expectations.
For H1 FY27, therefore, the return table was led by small-cap equities at 23%, followed by mid-caps at 13% and large caps at 2%. Gold and silver ended the period with negative returns of 10% and 15%, respectively.
