Gold price: Long-term investing data once again highlighted a key finding – Gold returns have outperformed Indian stock market index Nifty and other asset classes including fixed income, real estate in long as well as short term.
A comparison of returns across equities, gold, real estate and debt as of January 31, 2026 by FundsIndia’s Wealth Conversations Report shows that while equities have consistently delivered solid wealth creation, gold has emerged as the top-performing asset over the longest periods.
Indian equities, measured by the Nifty 50 TRI, delivered compounded annualised returns of 12.6% over 20 years, translating into a 10.7x multiplication of invested money.
However, over 20 years, the yellow metal has delivered a compounded annual return of 15.6%, the highest among all asset classes, and multiplied investments by a remarkable 18.3 times.
Among other asset classes, US equities, represented by the S&P 500 TR (in INR terms), also delivered strong outcomes, with 15.1% CAGR over 20 years, multiplying money 16.6 times. In contrast, real estate and debt lagged behind. Real estate delivered 7.8% CAGR over 20 years, multiplying money 4.5 times, while debt generated 7.6% returns, growing investments by 4.3 times over the same period.
Similarly, over 15 years, equities returned 12.1%, while over 10 years, returns stood at 14.2%. These figures reinforce why equities remain the core of long-term portfolios despite periodic volatility.
Meanwhile, gold, even over 15 years, gold returned 14.4%, whereas over 10 years it delivered 19.7% CAGR. These numbers underline gold’s dual role as both a hedge and a long-term wealth creator, especially during periods of economic uncertainty.
Similarly, in 1, 3, and 5 years, Nifty witnessed 9%, 14.1% and 14.5% returns, respectively, as against 87.7%, 42.6% and 27.4% returns in the yellow metal in 1, 3, and 5 years, respectively.
What should be your investment strategy for Gold?
Over the years, Gold has quietly reasserted itself as a serious portfolio asset, not just a hedge for uncertain times. After rising steadily for over 18 months, the yellow metal is being supported by central bank buying, shifting interest-rate cycles and a softer US dollar outlook, prompting investors to reassess its role in long-term portfolios.
Emkay Wealth Management believes the case for precious metals remains intact. “With central banks continuing to accumulate gold, interest rate cycles turning supportive, and silver benefiting from rising industrial demand, precious metals are increasingly being viewed as core portfolio assets rather than tactical hedges.”
It believes that gold and silver have emerged from a decade-long consolidation phase and entered a structural bull market about a year ago, a phase that historically tends to last three to five years. Indian investors, it added, have benefited not just from rising global prices but also from rupee depreciation against the dollar.
Reinforcing the constructive view, Geojit Investments Limited noted, “Gold prices are expected to remain supported by sustained central bank purchasing and strong ETF inflows, even as geopolitical tensions ease and trade related uncertainties diminish.”
It added that policy uncertainty has added volatility. “Speculation that Kevin Warsh could succeed Jerome Powell as the next Federal Reserve Chair introduced additional volatility, as investors reassessed the potential implications of a shift in U.S. monetary policy.”
Overall, Emkay Wealth said gold remains well supported at current levels, with investors continuing to seek diversification, stability and protection against macroeconomic and currency uncertainty. It recommends, portfolios with relatively high exposure, particularly where gold and silver together account for more than 25 to 30% of assets, should be reviewed with a professional advisor to assess profit booking while retaining strategic allocations.
“New investors looking to enter after the sharp run-up are advised to adopt a disciplined approach. An allocation of around 5 to 10% of the overall portfolio may be more appropriate. Investments are best staggered over time to mitigate volatility, with options including physical gold, gold and silver ETFs, gold mutual funds and precious metal-linked investment products,” the brokerage adviced.
Disclaimer: 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.
