Equity, gold or real estate: Which asset has grown money the most in 20 years?
When it comes to building wealth, experts always advise investors to stay invested for the long term. But what does this ‘long-term’ mean and deliver? When experts talk about ‘long-term investing’ in the context of wealth building, they mean holding the investment for a period of 5 to 10 years or even longer. If an investor gives that time to their investment, the invested money gets time to ride out market fluctuations and benefit from compounding over time. In this write-up, we will review the performance of three asset classes, equities, gold, and real estate, based on their returns over 1, 3, 5, 10, 15, and 20-year periods.
‘FundsIndia’s Wealth Conversations’ report here provides clear insights into the performance of Indian equities, gold, and real estate as of May 31, 2025.
Comparison of returns across periods: What does the report say?
Here’s how these three asset classes compare across timeframes:
| Timeframe | Indian Equities (Nifty 50 TRI) | Gold (INR) | Real Estate (NHB Residex) |
| 1 Year | 11.1% (1.1x) | 43.1% (1.4x) | 7.4% (1.1x) |
| 3 Years | 15.6% (1.5x) | 25.3% (2.0x) | 6.9% (1.2x) |
| 5 Years | 22.3% (2.7x) | 16.4% (2.1x) | 5.7% (1.3x) |
| 10 Years | 12.7% (3.3x) | 14.0% (3.7x) | 5.2% (1.7x) |
| 15 Years | 12.5% (5.8x) | 11.3% (5.0x) | 6.4% (2.5x) |
| 20 Years | 14.6% (15.2x) | 14.7% (15.5x) | 7.7% (4.4x) |
Source: FundsIndia Wealth Conversations – June 2025 (Data till 31 May 2025)
According to the FundsIndia’s Wealth Conversations – June 2025 Edition, Indian equities have outperformed other traditional asset classes like gold, real estate, and debt over a 20-year horizon. While equities turned Rs 1 lakh into Rs 15.2 lakh, gold grew the same amount to Rs 15.5 lakh, and real estate managed just Rs 4.4 lakh.
When the decision to invest is related to your retirement or children’s future, then figures are not enough – trust is needed. 20 years of data shows that the stock market has strengthened this trust the most.
Stock market: The most reliable despite the fluctuations
Most investors are often apprehensive of the stock market. News of fluctuations, headlines of falling markets and more, but the report says that if you have patience, the market will not abandon you.
Nifty 50 TRI gave 14.6% annual return and increased the investment by 15.2 times. Not only this, the midcap and smallcap index did even better. This increase in midcap was up to 25.3 times.
That is, if you once chose wisely and held on without panicking, the market gave wealth in return.
Gold: Stable, safe but limited growth
Gold is not just considered jewellery in Indian homes, it is also considered a safe investment. And the figures of the last 20 years also prove this.
With an average annual growth of 14.7%, gold has multiplied money by 15.5 times. But this pace of gold has sometimes accelerated due to sudden global events – like the Covid pandemic or the Russia-Ukraine war.
That is, gold gives a temporary boost, but rarely becomes a source of permanent wealth.
Real estate: Dream home, but investment is slow
Every Indian aspires to have his own house. But from an investment perspective, real estate is no longer giving the kind of returns it used to give earlier.
Its average annual return in 20 years was just 7.7% – that is, Rs 1 lakh became just Rs 4.4 lakh. This growth in such a long time neither beats inflation, nor your big financial goals.
Where did the money grow the fastest?
Investments in the stock market have doubled in 6–7 years, and tripled in 10–11 years.
Gold also gave a return of 15.5 times in 20 years, but its journey was not that stable.
Real estate performed the slowest – only 4.4 times in 20 years too.
That is, patience and right asset selection have created huge wealth in the long run.
Conclusion: If you want to grow money, keep a long view
Many times we get nervous after seeing the returns of 1 or 2 years – we panic if the market falls, and buy gold immediately if it rises. But this report teaches that the real game is of the long term.
The stock market has repeatedly shown that if you invest patiently and wisely, then you have earned good money even after the crash.
So whether you are planning for retirement or your children’s education, investment decisions should be based on thinking, not data – and the thinking should be long term.