For a long time, India has been performing better than many countries in terms of equity. According to the report of DSP Mutual Fund, gold has performed better than equity in all emerging markets except India. Gold has traditionally been an important diversification asset, however, India has emerged as an exception in this competition between gold and equity. DSP MF said that gold has provided some relief in the areas facing economic challenges. However, India's strong currency and equity have outpaced gold returns. This reflects the strength of Indian markets.

What should investors do? According to DSP Mutual Fund, it is important to include gold in the portfolio of emerging markets. Because its performance has been consistently better than equity in most sectors. In emerging markets, gold has given better returns in local currency, which is due to economic and political turmoil. This often weakens the currency and increases the price of gold. Meanwhile, India stands out due to stability in its currency and strong equity performance. While many emerging markets are already facing ongoing challenges, which makes gold a valuable asset here. India is the only exception at this time, where local stocks are outperforming gold. This is rarely seen. DSP Mutual Fund said that by including gold in the portfolio, market turmoil can be avoided. Apart from this, protection from risk is provided and total return also increases. For investors in emerging markets, gold provides both stability and growth potential in uncertain times. India has performed well India has performed better than the S&P 500 index even in the era of strong US dollar. According to the report, the 4-year rolling CAGR of the relative performance of India compared to the US and emerging markets compared to the US is in India's favour. Currently, it is at a difference of 18.2% CAGR, which is the highest figure recorded so far. China's influence China is also being considered as one of the reasons for the poor performance of emerging markets. In the last few weeks, China has implemented stimulus measures to curb the slowing economic growth. If equity in China returns on track, it may soon attract foreign investors on a large scale. According to the report, this has dealt a blow to the expectations in India, which said that foreign investors would turn to India due to pressure in China. Foreign investors are investing $86 billion at a time when the value of Indian equity is very high. This shows that this flow of capital may not have happened at the right time. Investing at high valuations may give low returns in the future. However, the main thing is that investments in the market are often made keeping in mind the current performance. Therefore, only high foreign investment does not guarantee high returns to investors in the Indian market.