Rebalance by booking partial profits in gold, silver, US funds

Small deviations may be corrected by directing more money into underperforming assets like debt and equities

- HIMALI PATEL

The end of the year presents investors with an opportunity to review their portfolios and assess whether they remain aligned with their financial goals. While those working with financial advisors can rely on professional reviews, do-it-yourself investors should undertake this exercise themselves to prepare for the year ahead.

Why a review matters

A year-end review enables investors to assess how each asset class performed and whether their portfolio effectively captured those returns. “It also allows investors to rebalance their portfolios in case any part of it has grown disproportionately or lagged, thereby altering its risk profile,” says Niranjan Avasthi, senior vice president, Edelweiss Mutual Fund.

This exercise also allows investors to realign their portfolios with changing market conditions and evolving personal objectives.

Asset-class performance in 2025

Gold and silver delivered strong gains in 2025. “Global economic uncertainty, along with a weaker US dollar, increased the demand for safe-haven assets. Silver also gained due to strong industrial demand and supply constraints,” says Avasthi.

Within equities, international markets outperformed domestic ones, with the United States (US) and China performing particularly well. Among domestic equity funds, after five years of underperformance, large-cap funds beat mid-cap and small-cap funds, as elevated valuations in the latter limited further upside. Heightened volatility also led investors to favour large, stable businesses.