Gold’s sharp rally this year, comfortably outpacing equity returns, has reignited debate among investors about the best asset class for long-term wealth creation.
Helios Capital founder and fund manager Samir Arora weighed in, making a strong case for equities by sharing long-term return data to reinforce the argument that stocks have historically generated superior wealth over extended periods.
Arora was responding to a post on X by Ansid Capital’s Anurag Singh, which claimed that gold has outperformed Indian equities and even broader markets over the long run. The post cited the impact of currency depreciation and questioned whether systematic investments in gold now make more sense. It noted that the Nifty 50, in US dollar terms, rose from about 1,000 in 1994 to 10,500, implying a CAGR of 7.8%, while gold climbed from $345 to $4,550 over the same period, delivering a higher CAGR of 8.6%.
Countering this view, Arora argued that outcomes vary significantly depending on benchmarking and the time period chosen.
Nifty 50 vs gold vs S&P 500
According to data shared by Arora, the Nifty 50’s total return from December 31, 1998, to date stands at 1,922.38%, translating into a compound annual growth rate (CAGR) of 11.78% in US dollar terms over nearly 27 years. Over the same period, gold delivered a return of 1,472.66%, or 10.74% per annum, also measured in dollar terms.
The comparison becomes even more striking when set against the US equity market. The S&P 500 generated returns of 821.05%, or 8.57% per annum, during this period-significantly underperforming both the Nifty 50 and gold.
Arora also pointed out that when comparing Indian equities with the S&P 500, the more appropriate benchmark is the NSE 500 rather than the Nifty 50. On that basis, Indian equities look even stronger: the NSE 500 has delivered 2,590.1% returns, or 12.96% per annum in dollar terms over the same period.
Importantly, Arora noted that all these figures already factor in the depreciation of the Indian rupee over the years-a key concern often cited by investors when evaluating equity returns from a global perspective.
His conclusion was clear: despite bouts of gold outperformance, Indian equities-particularly when measured over long horizons-continue to set a benchmark that few asset classes can consistently match. While gold has surged nearly 80% this year, the Nifty 50 has gained about 10%, reinforcing that short-term cycles can differ sharply from long-term trends.