Long-term investing can compound your wealth — this saying, in some form or another, is likely heard by almost all investors. Yet, when it comes to equity market investing, it is often forgotten as soon as a crisis strikes. Gold — on the other hand — sees a totally different approach.

According to Swarup Mohanty, Vice Chairman and CEO of Mirae Asset Investment Managers (India), investing behaviour around gold offers a powerful lesson for equity investors, one that can help them generate immense wealth.

For generations, gold has held a special place in Indian households — not just as jewellery or tradition, but as a deeply ingrained savings habit. Families buy gold during festivals such as Dhanteras and Akshaya Tritiya almost instinctively, rarely worrying about whether the price is high or low. The goal has never been tactical timing; it has always been accumulation.

“Gold is a fascinating asset; Indians have historically bought it structurally during festivals, focusing on accumulation rather than price. Despite gold always feeling “expensive” when purchased, generations have created wealth because they never sell it; there is even a social stigma against selling gold,” Mohanty told Mint in an interview.

This disciplined pattern of buying and holding gold over decades without worrying about prices or selling during a crisis has quietly built financial security for many families.

Mohanty argues that if Indian investors could transfer this same mindset to equities, the results could be transformative.

Gold vs Equities: Diverging investor behaviour

However, when it comes to equities, investor behaviour is opposite. Investors constantly worry about prices and look for exits as soon as panic strikes. The ongoing Middle East conflict is an example enough.

Despite multiple past instances of Covid, the Russia-Ukraine war and even the 2008 GFC signalling that markets tend to climb the wall of worries, investors have resorted to panic selling. The Nifty has shed 7% in March alone since the US-Iran war erupted.

In a panic, people sell equity but would never sell their gold. This behaviour, according to Mohanty, is a big deterrent to generating wealth.

“My honest request is this: buy equity the way you used to buy gold. If you can transfer that “buy and hold” discipline from gold to equity, you will build immense wealth,” he said.

He advised accumulating equity, without obsessing over the price. Conversely, if you bring the bad habit of price-watching to gold, you destroy its purpose as a safety net, the fund manager said.

Gold prices have been on a tear over the last two years. MCX gold soared almost 70% in 2025 and is up another 20% this year. At the same time, the returns from the Indian equity markets over the last 18 months have been nil.

Mohanty said that gold’s bull run came to an end amid increased noise in the market. He pushed investors to ignore the price, while maintaining traditional behaviour, and most importantly, shifting that same long-term mindset to their equity investments.

Mohanty’s message is less about asset allocation and more about investor behaviour. If investors maintain discipline, continue accumulating over time, and resist the urge to panic during downturns, they can allow the power of compounding to work in their favour.

Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.