24-07-2025
Rs 1 Lakh Invested In Equity, Gold, Real Estate In 2005: Which Gave Most Returns In 20 Years?
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But what matters in the investment is the returns. Thus, it's better to look at the historical returns for these asset classes in the long-run, over 10 or 20 years.
Equity Vs Gold Vs Real Estate: The equity market is a long-term game as propounded by several renowned investors. This isn't just an old rhetoric to hide the embedded volatility that could oscillate an investor's heartbeat by daily losses and gains. Even data accentuates this old-age wisdom that equity market outperforms other assets including gold, real estate and debt in the long term.
There are several avenues of investment for Indian investors, be it equity, gold, real estate, and several more. Mainly, these are major financial instruments that are considered for wealth-building.
However, options lead to confusion as where to go for the investment. This is known as 'Choice Paradox', the more options you have, the more confused you will become.
Where should an investor go among Equity, Gold, and Real Estate?
There's no specific answer. Each asset and investment instrument has pros and cons. The investors' conviction and risk-factor that play an important role in the decision.
But what matters is the returns. The purpose of investment in assets is to generate as much return as possible. Thus, it's better to look at the historical returns for these asset classes in the long-run, over 10 or 20 years. Of course, past return won't guarantee the same future return. This investors must keep in mind while making an investment decision.
Indian equities have outperformed other major asset classes over the long term, generating compounded annual returns of 14.4% over the past 20 years, according to data as of June 30, 2025, compiled by FundsIndia.
This translates into a 14.7x multiplication of investors' money—highlighting the consistent wealth-building potential of long-term investments in equities.
The Nifty 50 Total Returns Index (TRI) topped the long-term chart, delivering robust returns over two decades, outpacing asset classes such as real estate, debt, and even gold.
Interestingly, gold also performed strongly over the 20-year horizon, matching Indian equities with a 14.4% return and a 14.8x multiplier. However, its 15-year CAGR was lower at 11.1% versus Nifty 50's 12.4%.
Real estate and debt lagged significantly in long-term performance. Real estate investments returned just 7.7% CAGR over 20 years, growing 4.4 times in value. Debt assets performed similarly, with a 7.6% return and a 4.3x multiplier.
In the short term (1–3 years), gold remained highly volatile, showing a 45% return in 1 year and 25.2% in 3 years, while Indian and US equities experienced relatively steady growth.
How Much Rs 1 Lakh Invested In These Assets In 2005 Would Be Today?
If you had invested Rs 1 lakh in Indian equities (Nifty 50 TRI) 20 years ago, your money would have grown nearly 15 times to become around Rs 14.7 lakh today. A Rs 5 lakh investment would have become approximately Rs 73.5 lakh, and Rs 10 lakh would have turned into a whopping Rs 1.47 crore.
Gold has also been a solid performer. Over 20 years, it multiplied investments by 14.8 times. This means Rs 1 lakh invested in gold would now be worth Rs 14.8 lakh, while Rs 5 lakh would have grown to Rs 74 lakh, and Rs 10 lakh to Rs 1.48 crore.
On the other hand, real estate delivered more modest growth—multiplying money by 4.4 times. So, Rs 1 lakh would have become Rs 4.4 lakh, Rs 5 lakh would be Rs 22 lakh, and Rs 10 lakh would have grown to Rs 44 lakh.
tags :
equity Gold real estate
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New Delhi, India, India
First Published:
July 24, 2025, 14:18 IST
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