2025, Vol. 6, Issue 2, Part E
An empirical analysis of asset class performance in the era of modinomics (2014-2025): A study of risk, return, and cyclical leadership
Author(s): Rakesh Bhati and Lakshmi Jasti
Abstract: This paper presents a rigorous empirical investigation into the performance of five principal asset classes in India—the S&P BSE Sensex (equities), Gold, Silver, Bank Fixed Deposits (FDs), and the Public Provident Fund (PPF)—over the distinct economic epoch of 'Modinomics,' from May 2014 to June 2025. This period, marked by transformative structural reforms, significant macroeconomic shifts, and unprecedented global shocks, provides a unique laboratory for evaluating investment paradigms. Employing a quantitative methodology, this study calculates and contrasts a suite of performance and risk metrics, including Absolute Returns, Compound Annual Growth Rates (CAGR), annualized volatility, Sharpe Ratios, and maximum drawdowns. The findings reveal a nuanced hierarchy of performance. While the Sensex delivered a powerful CAGR of 11.89%, it was Gold that emerged as the top performer with a CAGR of 12.19%, underscoring a strong demand for safe-haven assets. Gold also provided the most efficient risk-adjusted return. In contrast, fixed-income instruments like FDs and PPF, though providing crucial capital stability, yielded modest returns that were challenged by the prevailing economic conditions, reflecting the era's declining interest rate trajectory. The study concludes that while equities remain a potent engine for wealth creation, the volatile and uncertain nature of the economic landscape highlights the strategic imperative of a diversified, risk-aware investment methodology. This paper provides data-driven recommendations for portfolio construction based on risk appetite and discusses the broader policy implications of these performance trends on domestic savings and investment patterns.
DOI: 10.22271/27084515.2025.v6.i2e.677
Pages: 449-453 | Views: 351 | Downloads: 65
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How to cite this article:
Rakesh Bhati, Lakshmi Jasti. An empirical analysis of asset class performance in the era of modinomics (2014-2025): A study of risk, return, and cyclical leadership. Asian J Manage Commerce 2025;6(2):449-453. DOI: 10.22271/27084515.2025.v6.i2e.677
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