How equities, gold, fixed income, and real estate stacked up from 2010 to 2025
Introduction
Over the past 15 years, Indian investors have navigated policy shifts, global shocks, and a domestic growth renaissance. Despite volatility, disciplined compounding has rewarded those who stayed invested. Here’s a clear, no-jargon look at how major investment avenues performed cumulatively from roughly mid-2010 to mid-2025.
Section 1: Equities — The Growth Engine
- Outcome: About 4–5x cumulative growth (roughly 10–12% CAGR)
- What drove it: Earnings growth, formalization of the economy, digital adoption, and strong domestic flows.
- The journey: Not a straight line—sharp drawdowns (notably in early 2020) were followed by powerful recoveries. Dividends lift total returns beyond price gains.
- Investor takeaway: Staying invested through cycles matters more than timing the market.
Section 2: Gold — The Crisis Hedge
- Outcome: Around 3–4x cumulative growth (roughly 8–10% CAGR)
- What drove it: Global risk episodes, central bank demand, and INR depreciation against the USD.
- The role in portfolios: Helps during equity drawdowns and inflation spikes, but typically lags equities over long expansions.
- Investor takeaway: A strategic diversifier, not the core growth driver.
Section 3: Fixed Income — Stability Over Sizzle (PPF and FDs)
- PPF outcome: About 2–2.3x (roughly 5–7% CAGR)
- Bank FD outcome: Around 2x (roughly 5–6% CAGR)
- What drove it: Administered PPF rates and cyclical deposit rates; lower volatility and high capital safety.
- Investor takeaway: Ideal for capital protection and tax-efficient stability, but modest real returns.
Section 4: Real Estate — Wide Dispersion, Local Stories
- Outcome: Commonly 1.8–3x headline appreciation (roughly 4–8% CAGR), highly location- and segment-specific.
- Nuances: Transaction costs, maintenance, taxes, and vacancy can meaningfully reduce net outcomes. Rental yields help but are often modest.
- Investor takeaway: Selectivity and total-cost thinking are crucial; liquidity is limited.
Section 5: A Simple Mental Model
If you had invested ₹1 lakh around 15 years ago:
- Equities: ~₹4–5 lakh
- Gold: ~₹3–4 lakh
- PPF: ~₹2–2.3 lakh
- FDs: ~₹2 lakh
- Real estate: ~₹1.8–3 lakh equivalent in headline price, with net results depending on costs and rental income
Section 6: Portfolio Design Principles
- Make equities your core for long-term goals.
- Add gold as a hedge against shocks and currency risk.
- Use PPF/FDs for safety-first goals and liquidity needs.
- Be selective with real estate, focusing on yield, location, and holding costs.
- Reinvest consistently; time in the market compounds results.
Conclusion
From 2010 to 2025, equities led cumulative wealth creation in India, gold provided resilience, fixed income delivered safety, and real estate offered mixed but meaningful gains. A balanced allocation—equities at the core, gold as insurance, and fixed income for stability—has been a practical approach to compounding through change.