Increasing investments of 100,000 rupees in stocks, gold, real estate, and US stocks over a period of 20 years.

Calculating 20-year investment returns: Indian stocks have outperformed all other asset classes, including gold, real estate, US stocks, and bonds, over the long term, providing a return of 17% over 20 years. See details.

If you had invested 1 lakh rupees in Indian stocks 20 years ago, it could have grown to approximately 24 lakh rupees by now. Meanwhile, the value of the same investment in gold and real estate would have been around 9.6 lakh rupees and 5.6 lakh rupees respectively over 20 years. According to a report on the 20-year returns of these asset classes, the value of 1 lakh rupees invested in US stocks would have been about 11.3 lakh rupees after 20 years.

According to the latest "Wealth Conversation Report" from FundsIndia

Indian stocks have outperformed all other asset classes, including gold, real estate, US stocks, and bonds, over the long term with a return of 17% over 20 years. The report states that Indian stocks (Nifty 50 TRI) provided a return of 17.2% over 20 years, 10.6% over 15 years, and 13.3% over 10 years. In the last five and three years, Indian stocks yielded returns of 12.9% and 26.1% respectively. In comparison, the return from US stocks (S&P 500 TRI in INR) was only 12.9% over 20 years, 14.8% over 15 years, and 16.4% over 10 years. In the last three and five years, US stocks yielded returns of 16.2% and 15.7% respectively. Indian stocks also outperformed US stocks over one year with a return of 12.9% compared to just 9.5% from the latter. Source: FundsIndia Wealth Conversation Report, June 2023. Returns as of May 31, 2023.

The return on gold over 20 years was 12%, while over 15 and 10 years it was 10.3% and 7.5% respectively. Interestingly, in one year, gold showed the best return among all asset classes with a 14.2% return compared to 12.9% from Indian stocks and 9.5% from U.S.