New Delhi, Nov 8 : A study shows that on an average, gold has returned 11 per cent CAGR in the last 20 years. Gold is an efficient asset class that provides safety and acts as an efficient hedge against inflation, hence it is better to invest in a portfolio that includes gold, says a study conducted by Windmill Capital, a wholly owned subsidiary of smallcase Technologies Pvt. Ltd. The study indicates that demand for gold is likely to remain robust during the festive season, especially Diwali. The recent study by Windmill Capital highlights that in times of geopolitical uncertainty, gold is expected to trend higher in the immediate term. As per the study, Gold is an efficient asset class that provides safety. Historically, whenever there is turmoil in the market, investors' natural tendency is to flee to safety. Gold as an asset class tends to do well during crises. For example, while Nifty returns have been negative during Covid crisis or Russia-Ukraine war, Gold returns have been positive. Hence gold is an effective hedge against equities. Gold also acts as an efficient hedge against inflation outperforming Nifty 50 during high inflation periods. High inflation has generally correlated with lower equity returns. On the other hand, over the long term, gold acts as an efficient hedge against inflation. /IANS