A Look at Ten Years of Returns
Every asset class behaves in its own way over time. When we look at the last ten years of returns, we see a very mixed picture. The data covers eight major asset classes such as silver, government securities, real estate, gold, debt (short term), equity large cap, equity mid cap, and equity small cap. Each year shows a very different result, and this pattern continues from 2016 to 2025.
No Asset Stays at the Top Always
One clear lesson is that no asset class stays at the top or bottom every year. For example, silver was the best performer in 2016 with around 17% return, but the very next year it fell to the sixth position. After that, it stayed in the same zone for some time, then jumped to the second position, later reached the top again in 2020, dropped, and then again came back to the top in 2025. This shows how quickly things can change.
Big Swings in Small Cap
A similar pattern can be seen in small cap equity. In 2016, small cap was at the bottom with just 1% return. But the next year, it shot up with a huge 54% return. After that, it again fell sharply to minus 29%, then minus 9%, then went up to plus 20%, then plus 57%, then dropped to minus 14%, and again came back with plus 54%. These ups and downs show that different asset classes perform differently at different times.
Why Asset Allocation Matters
Because no one can guess which asset class will perform well every year, asset allocation becomes very important. If money is spread across different asset classes, it reduces risk and gives balance. And if there is a system that allows small adjustments based on momentum or confidence, the overall long-term returns can become even better.
Ten-Year Average Returns
When we look at the ten-year average, gold shows a strong return of around 17.1%. Large cap equity gives around 12.6%, and small cap gives around 13.3%. This means that a balanced mix of gold, mid caps, silver, and other assets could have helped create better overall results over these years.
Keep Your Money Spread Out
The simple message is this: do not ignore any asset class, and do not put all your money into only one or two places. Keep your money distributed so you can benefit whenever any asset class performs well. This makes the journey safer and smoother over the long run.
