Gold vs equity vs property: Which delivered better returns in the past decade?

Indian rupee ended 9 paise higher at 88.69 per dollar on October 10 against the October 3 closing of 88.78. During the week the Indian rupee traded in the range of 88.79-88.50.

As Indians, we love gold, trust property, and are slowly warming up to equities. But which of these has actually worked best for wealth creation for Indians in the last 10 years? The answer isn’t as straightforward as picking a winner, because each asset class shines (or slumps) depending on timing, risk appetite, and personal goals.

The case for gold

Gold has always been the emotional favourite for Indians. Over the past decade, it has provided stability in times of uncertainty, especially during events like the pandemic and global market volatility. On average, gold has delivered around 16 percent annual returns in the last 10 years given the recent rally in gold prices. The biggest advantage of gold is its ability to act as a hedge when markets wobble.

The case for equities

Equities, through direct stocks or mutual funds, have been the clear outperformer over long horizons. Despite market crashes and corrections, Indian equity indices have delivered average returns around of 13% annually over the past decade. Compounding and growth make equities a strong wealth-building option provided you have patience and don’t panic-sell during downturns.

The case for property

Real estate, traditionally a favourite among Indian families, has had mixed performance. Property values saw a slowdown after the mid-2010s due to regulatory changes and subdued demand. In many areas, appreciation has been steep given the location of the property, which is lower than equities but higher than inflation. However, real estate offers utility you can live in it, rent it out, or pass it on as an inheritance. Liquidity, though, remains a major drawback.

The bottom line

Rather than betting everything on one asset class, the smarter play is diversification. A mix of gold, equity, and property ensures that when one is underperforming, the others can balance your portfolio.

FAQs

1. Should I sell my gold or property to invest more in equities?

Not necessarily. Gold and property have different roles in your financial plan. Equities build wealth faster, but gold provides safety and property offers stability. Balance is key. Ideally you should invest 10-15% of your portfolio in gold.

2. Which asset is best for retirement planning?

Equities usually deliver the highest long-term growth, making them ideal for retirement portfolios. But having some gold and property in the mix adds security and stability.

3. Are past returns a guarantee for the future?

No. Gold, equities, and property all move in cycles. What worked in the past may not repeat exactly, so your decision should depend on goals, time horizon, and risk tolerance.