Experts Favor Equities Over Crypto and Gold for Long-Term Wealth Creation

Investors are weighing their options between crypto, equities, and gold as prices of Bitcoin and Gold rise. Market experts broadly see equities as having the strongest structural case over the next decade, with gold retaining its role as a portfolio hedge.

Jateen Trivedi, VP research analyst at LKP Securities, noted that equities have delivered more consistent long-term compounding. He emphasized that while crypto has generated high returns in certain periods, it comes with substantially higher volatility and drawdowns.

Trivedi also classified Gold as an important hedge, suggesting a decent allocation of 20-30% should be made to this asset class. V K Vijayakumar, Chief Investment Strategist at Geojit Investments, shares similar sentiments, highlighting that equity returns could remain in double digits while gold and crypto are likely to be more erratic.

Harshal Dasani, business head at INVasset PMS, also echoed the same sentiment, stating that equities have the best outlook due to their earnings engine. He noted that while Gold can outperform equities under specific macroeconomic conditions, equities still have a stronger fundamental return engine through earnings and dividend growth.

Experts caution against extrapolating short-term performance into long-term returns for crypto. Trivedi believes crypto has the largest mismatch between return expectations and perceived risk. He noted that gold offers lower expected returns but considerably lower downside risk, while equities sit somewhere in between.