Gold Outperforms Equities and Real Estate Over 20-Year Period: Report
A recent report by FundsIndia reveals that gold has outperformed most asset classes, including equities and real estate, over a 20-year period, with a compounded annual return of 15%.
GoldEquitiesReal EstateInvestmentCagrReal Estate NewsDec 11, 2025
Real estate, with a CAGR of 7.8%, and debt at 7.6% were at the bottom of this pyramid, according to the FundsIndia study. The return from Indian equities (in rupee terms) at 13.5% over 20 years was lower than the 14.8% CAGR return given by US equities as measured by the S&P 500 TRI in rupee terms, data shows.
The demand for gold, explains G Chokkalingam, founder and head of research at Equinomics Research, has been driven by central bank buying across the globe, which kept prices on an upward trajectory. “That apart, gold’s safe-haven appeal never dulled for retail investors in the last few years amid aggressive central bank policies, geopolitical concerns, rupee depreciation, and steep equity valuations,” he said.
Over a shorter duration of 5 years, the CAGR return from gold was even better at 23.2% compared to 16.5% for Indian equities and 19.6% for US equities, the FundsIndia report suggests. Despite the stellar returns, experts see more headroom for gold prices in the year ahead, which they believe will be led by firm demand amid safe-haven buying as geopolitical risks take center stage.
The other factors driving gold prices upwards include challenges in mining, limiting production, and ultimately affecting supply when demand remains high. “It’s predicted that by the end of 2026, gold could rise to $5,000 per troy ounce. Global central banks are expected to maintain their gold buying momentum, which will be key to gold hitting that $5,000 value mark. Gold will continue to see significant rise, especially if current inflation and uncertainty trends persist,” said Rick Kanda, Managing Director at UK-based The Gold Bullion Company.
With the equity segment back home, the 20-year CAGR return from mid and small-caps at 16.5% (Nifty Midcap 150 TRI) and 14.3% (Nifty Smallcap 250 TRI), respectively, was higher than the 13.8% for large-caps (Nifty 100 TRI), according to the FundsIndia report. There has been a structural change in the last 10 years in how and where Indian retail investors put their money, Chokkalingam noted, with most preferring the mid and small-cap segments to make a quick buck.
“The retail investor base 10 years ago was around 6-6.5 crore, which has swelled to over 20 crore now. Most investors invest in the small and mid-cap universe to make quick money. That said, the economic growth over the years has also helped companies in these two segments score over their large-cap peers, which translated into superior market returns for the small and mid-caps,” Chokkalingam added.
Frequently Asked Questions
What is the CAGR of gold over a 20-year period?
Gold has a CAGR of 15% over a 20-year period, outperforming Indian equities and real estate.
How does the CAGR of Indian equities compare to US equities over 20 years?
Indian equities provided a CAGR of 13.5% over 20 years, while US equities had a CAGR of 14.8%.
What factors are driving the demand for gold?
Central bank buying, gold’s safe-haven appeal, geopolitical concerns, rupee depreciation, and steep equity valuations are driving the demand for gold.
What is the predicted price of gold by the end of 2026?
Gold is predicted to rise to $5,000 per troy ounce by the end of 2026.
How have mid and small-cap stocks performed over 20 years compared to large-caps?
Mid and small-cap stocks have outperformed large-caps over 20 years, with CAGRs of 16.5% and 14.3% respectively, compared to 13.8% for large-caps.
Related News Articles
Pune Police Conducts Raid on Nilesh Ghaywal’s Kothrud Residence, Seizing Valuable Documents and Ammunition
Pune city police conducted a significant raid at the residence of notorious gangster Nilesh Ghaywal in Kothrud, seizing various documents and ammunition. The operation was part of an ongoing investigation into Ghaywal's criminal activities and his alleged connections with law enforcement and political figures.
Mumbai Crime Branch Cracks Down on Chhota Rajan’s Extortion Syndicate
The Mumbai Crime Branch has made significant progress in dismantling a notorious extortion racket linked to the Chhota Rajan gang. Five members were arrested for attempting to extort a local real estate developer who had already paid a staggering Rs 55 la
Aamir Khan's Pali Hill Residences Embark on Major Redevelopment
Aamir Khan, the renowned Bollywood actor, is set to expand his real estate portfolio with the redevelopment of his apartments in Pali Hill, one of Mumbai's most upscale neighborhoods. This move is expected to boost the luxury property market in the area.