Nifty50 beats gold in returns, offers better capital protection
Indian stocks have given about 11.5 percent returns each year, while gold has returned around 8–10 percent from 1990 to 2025, according to a report. The Nifty50 index has provided better returns over periods of three years or more, with a 98.1 percent chance of protecting the invested money. Gold, on the other hand, only has an 84 percent chance of protection over the same period.
To ensure nearly full protection with gold, investors need to stay invested for about seven years. The report also said gold should make up no more than 10–20 percent of a portfolio. Gold can rise sharply in a crisis, but it often falls significantly afterward. The study showed that, globally, stocks are better at building wealth than gold.
