Gold turned ₹1 lakh into ₹15 lakhs in 20 years - Here's how equities, real estate and debt compare
Equities in India and the US have outperformed fixed deposits, debt, and real estate over the long term. Mid-cap and small-cap stocks yielded the highest returns, emphasizing the importance of long-term investment.
Despite India’s strong preference for fixed deposits, equities — both Indian and US markets — have historically delivered significantly higher returns as compared to other asset classes like debt and real estate over long periods such as 10, 15 or 20 years.
While investing in equities can be risky in the short term, especially over six months to three years, they remain one of the most path for creating long-term wealth.
How different asset classes performed?
A recent report by FundsIndia found that Indian equities delivered annual returns of 13.2% over 10 years, 11.3% over 15 years and 11.4% over 20 years. At that pace, investments would have multiplied roughly 3.5 times in 10 years, 5 times in 15 years and nearly 8.7 times over two decades.
US equities performed even better, delivering annualised returns of 19.4% over 10 years, 19.8% over 15 years and 15.2% over a 20-year period, with money multiplying at 5.9x, 15x and 17.01x over similar periods.
As compared to that, real estate provided a return of 5.6% and 7.9% in 15 and 20 years and debt instruments provided returns in the range to 7.5% to 7.6% over the same period.
Gold also delivered impressive long-term returns, generating 14.6% retuns over 20 years and multiplying investments by more than 15 times. However, even that strong performance could not beat returns generated by US equities over the same period.
Indian equities delivered 13.2% CAGR over 35 years
The report also states, (citing the performance of the Nifty 50 index since July 1990) that despite multiple market cycles, corrections, and economic crises over more than 35 years, Indian equities have delivered a compounded annual growth rate (CAGR) of 13.2%, turning investments nearly 86 times over.
That is, ₹1 lakh into ₹85 lakh in 35 years.
Which equity segments provided best returns?
When a comparison is drawn between different segments of the Indian equity market — large caps, mid caps, small caps and flexi caps —it shows that while all categories performed well over the long term, mid-cap and small-cap equities stood the test of time delivering higher returns particularly over the last 20 years.
The data shows that the Nifty Midcap 150 TRI generated returns of 14.6% over 20 years, multiplying investor wealth more than 15 times. Meanwhile, the Nifty Smallcap 250 TRI delivered 12.7% annualised returns, turning money nearly 11 times over the same period.
On the other hand, large-cap equities, represented by the Nifty 100 TRI, delivered 11.8% annualised returns and multiplied wealth about 9 times in 20 years.
Equity investing rewards patience. As the investment horizon increases, the chances of negative returns narrows, while the possibility of earning over 7-10% returns rises significantly. Historically, Indian equities have delivered consistent returns for those who stayed invested for 7 years or longer.
About the Author
Sanchari Ghosh is an Assistant Editor at Mint with over 12 years of experience in journalism, specialising in personal finance, DLT & DeFi, geopolitics and foreign policy, with a particular emphasis on how these areas intersect. <br> She writes extensively about how money works in everyday life—helping readers navigate personal finance decisions. <br> As AI reshapes investing behaviour, capital is increasingly flowing into decentralized ecosystems, redefining how assets are managed, traded, and valued. She focuses on explaining how money flows within frameworks like Distributed Ledger Technology (DLT), DeFi protocols, and crypto markets—while also exploring what the future of money could look like in a trustless, programmable financial world. <br> She also focuses on immigration-related issues, simplifying complex topics around visas, passports, overseas financial planning, and the many practical challenges Indians face while moving or living abroad. <br> Alongside personal finance, Sanchari has a strong understanding of international politics, contemporary and historical conflicts, and global state decisions. She closely tracks how geopolitical developments influence economies, markets, and individual financial choices, bringing together finance and global affairs in her reporting. <br> She began her career as a desk editor, which gave her a strong foundation in news writing. Over time, her interest naturally shifted toward personal finance. Before joining Mint in 2020, she worked DNA, The Times of India, Outlook Money, BloombergQuint, and ETMoney. At Mint, she got an opportunity to expand her coverage to include immigration and geopolitical developments while continuing to closely follow personal finance trends and market movements.As a journalist, she is committed to accuracy, intellectual rigour, and fairness. <br> She is an English Major and her work took her across cities including Delhi, Mumbai, and Pune. Living independently from an early age gave her firsthand experience in managing life and money on her own. This practical exposure sparked her strong interest in personal finance. <br> Outside the newsroom, Sanchari is a sports enthusiast who regularly plays lawn tennis and squash. In her younger years, she was also a national-level badminton player.
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