Investors are already reshuffling their portfolios for 2026, searching for the assets that could deliver solid returns.
Indian equities: a constructive set‑up
With upcoming interest‑rate cuts and tax reforms, Indian stocks are expected to become more attractive. The market usually reacts positively to such structural changes, though the effect may take a few months to show.
- Key drivers: EU‑India free‑trade agreement, upcoming Union Budget, and strong corporate earnings.
- Valuations have adjusted, creating a relatively constructive environment for the year ahead.
Precious metals: keep gold and silver modest
Gold remains a safe‑haven, but silver is much more volatile. A balanced exposure of 5‑10% of the portfolio in gold and silver combined is advised.
Global equities and the AI trade: expect moderation
International stocks are likely to see steadier growth, with the recent AI‑driven rally possibly cooling off as investors take profits.
Bonds: long‑duration debt could shine
Long‑duration Indian bonds may outperform, helped by two factors:
- Potential inclusion of India in the global bond index (expected around Jan 14).
- Improving fiscal health that reduces volatility.
Remember, this is perspective, not a prediction. Do your own research before making any investment decisions.