Which has given higher returns in the last 20 years, gold, real estate or stock market?
There is a lot of discussion about gold in recent times. In the current year, gold has given returns of more than 60 percent to investors. On the other hand, there has been a surge in the stock market for some time now. Real estate has also taken huge leaps since Covid. If we talk about the last two decades, different investment options have performed well at different times. Various domestic and global factors have influenced the market, causing prices of assets like gold, shares and real estate to rise and fall. Many times there has been a rise in the stock markets. Property prices have also increased significantly, and gold has increased investors’ wealth manifold. But the biggest question is, which investment has made the investors the richest during this period? Let us try to understand from the data who has given the highest returns in 20 years.
Which investment made the richest person in 20 years?
According to a new report by FundsIndia, gold has given the highest returns to investors in the last 20 years. Let us try to understand from the figures.
- Sleep: Over the last two decades, the precious metal has given 15 percent average annual return (CAGR). This means that if a person had invested Rs 1 lakh in gold in 2005, he would have got approximately Rs 16.3 lakh today.
- Stock Market (Nifty): Nifty, the main index of the National Stock Exchange, has given a gain of 13.3 percent. This means that equities have increased investors’ wealth by 12.1 times. Therefore an investment of Rs 1 lakh will become worth Rs 12.1 lakh in 20 years.
- Real Estate: The return on this has been 7.7 percent annually. This means that money has increased only 4.3 times in 20 years. Compared to gold and equities, real estate prices have not increased that much, taking an investment of Rs 1 lakh to Rs 4.3 lakh in 20 years.
- The picture is clear: The comparison shows that gold has outperformed both equities and real estate in the long run.
Why are gold returns higher?
Over the last two decades, gold has remained a “safe haven” for investors amid the global economic crisis, inflation, interest rate fluctuations and geopolitical tensions. Whenever uncertainty increased in the market, investors turned to gold. This is the reason why its prices are continuously increasing. The year 2025 is a great example of this bullishness of gold.
Equity and property market performance
Over the long term, equities have also performed well with a CAGR of 13.3 per cent (NIFTY50). Those who invested through SIP or regular investment have earned good profits. However, the growth rate of real estate has been slower than expected. After rising in the initial years, prices have remained stagnant in the last few years, leading to a decline in average returns.
Who has been better in the last 10 and 15 years?
According to the report, gold returns have been better than equities and real estate not only in the last 20 years, but also in the last 10 and 15 years. This precious metal has given returns of 16.6 percent in 10 years and 12.4 percent compound annual growth rate (CAGR) in 15 years. In contrast, the equity market (NIFTY50) has given a compound annual growth rate (CAGR) of 13.3 per cent and 11.2 per cent in the last 10 years and 15 years respectively. Talking about real estate, returns from property investment have not been that good, with a compound annual growth rate (CAGR) of 5.1 per cent and 5.9 per cent over the last 10 years and 15 years respectively. This means that investors who have invested in gold for a long time have gained more than those who bought equities and real estate.