How much a Rs 1 lakh investment in gold, real estate and Indian stocks has grown in 20 years
When it comes to investment purposes, three asset classes – gold, real estate and equity – score over other options. These three investment avenues too have their pros and cons, like other options. Gold for decades has been a preferred choice for Indian households due to traits like safe-haven appeal, liquidity advantage and cultural significance. Real estate is another popular investment avenue for people, thanks to low volatility and high returns in the medium- to long-term. On the other hand, equity gives a feeling of ownership to an investor after purchasing the stock of a particular company.
In this article, we will delve into the growth potential of an investment in these three asset classes. Let us look at the returns these assets have given to investors over the past 20-year period.
20 years back, gold was at Rs 5,850 per 10 grams and is now trading at Rs 74,200. According to IBJA, the precious metal (24-karat) hit Rs 74,220 per ten grams on May 21. If we calculate the return on gold investment of these two decades, the yellow metal’s price has surged by 13.5% annually in the past 20 years. At this rate of return, an investment of Rs 1 lakh in 2004 in gold would have turned into around Rs 12.5 lakh by now.
“Over the past 20 years, gold has been one of the best investment instruments for retail investors,” says Suraj HS, co-founder of Aurm, an asset protection firm that offers automated safe-deposit vaults in residential communities in partnership with banks.
Imagine investing in an apartment 20 years ago in Powai, Mumbai, for a fraction of its current price. Today, that investment would be a goldmine! This is the story of many Indian cities. Areas like Whitefield (Bengaluru), Gachibowli (Hyderabad), Powai
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