Top News

New Delhi, September 8, 2025: With Diwali just around the corner, investors are once again asking the timeless question: Should I put my money in gold or stocks this festive season? A new analysis of annual Diwali-to-Diwali returns since 2010 reveals that gold has consistently delivered stronger long-term gains than equities, though both asset classes have had their highs and lows.

Gold Outshines Stocks Over 15 Years

According to data studied from 2010 to 2025, if an investor had systematically put ₹10,000 into gold every Diwali, the total investment of ₹1.5 lakh would now be worth ₹4.47 lakh.

In comparison, the same annual investment in the Nifty 50 index would have grown to ₹3.72 lakh. This clearly shows that over the last 15 years, gold has offered higher compounded returns than equities.

The analysis highlights that gold has multiplied investments by 4.5 times, while the Nifty has grown by 3.7 times over the same period.

Performance in the Last 5 and 10 Years

Even in shorter timeframes, gold has maintained its edge.

• In the last five years, gold prices have risen at a CAGR (compound annual growth rate) of 16.1%, compared to the Nifty’s CAGR of 13.8%.

• Looking at the last 10 years, the performance gap narrows slightly, with gold showing a CAGR of 15.1% versus Nifty’s 12.3%.

This data underlines the fact that while equity markets have shown consistent upward movement, gold’s sharp rallies during uncertain times have allowed it to outperform.

Year-Wise Comparisons: Gold Still Leads

A closer look at select years shows how gold often provided better returns than equities:

• 2010 Investment: ₹10,000 in Nifty would now be worth ₹39,180, while gold would be ₹54,200.

• 2015 Investment: Nifty’s value today would be ₹31,630, whereas gold would be ₹41,340.

• 2020 Investment: Both assets gave decent returns, but gold still had the edge with ₹20,980, compared to Nifty’s ₹19,370.

Clearly, gold has shown resilience across different market cycles, particularly during global uncertainty or stock market slowdowns.

Why Gold Has Performed Better

Gold is traditionally considered a safe-haven asset, which shines during inflationary periods or when markets are volatile. Over the last decade and a half, global economic uncertainty, geopolitical tensions, and fluctuating interest rates boosted gold’s appeal.

Meanwhile, equities reflect the growth potential of companies and the broader economy. While the Indian stock market has delivered strong returns, phases of volatility and global shocks have occasionally slowed its momentum, giving gold an upper hand.

What Should Investors Do This Diwali?

Experts suggest a balanced approach. Gold can be a strong hedge against inflation and market volatility, while equities remain essential for long-term wealth creation through compounding.

• Investors with a low-risk appetite may prefer allocating more to gold this Diwali.

• Those looking for higher long-term growth may continue focusing on equities but should be prepared for market fluctuations.

• A diversified portfolio—combining both gold and stocks—can deliver stability as well as growth.

✅ Bottom Line: Over the last 15 years, gold has outperformed the Nifty 50 in terms of returns, turning ₹1.5 lakh into ₹4.47 lakh, compared to equities at ₹3.72 lakh. While stocks remain growth drivers, gold continues to shine as a safe and rewarding investment, making both asset classes important this festive season.