SIP vs Gold — 20 Year Return Comparison
Indians love gold, but does it create more wealth than equity SIP? Compare historical returns and decide what works for you.
SIP vs Gold Calculator
Compare equity SIP vs gold investment returns
Equity SIP
Gold Investment
Equity SIP generates ₹8.67 L more than gold over 15 years.
Historical Returns: Equity vs Gold in India
| Period | Equity (Nifty 50) | Gold | Winner |
|---|---|---|---|
| Last 5 Years (2021-2026) | 14.2% | 13.5% | Equity |
| Last 10 Years (2016-2026) | 12.8% | 11.2% | Equity |
| Last 15 Years (2011-2026) | 13.5% | 9.8% | Equity |
| Last 20 Years (2006-2026) | 14.1% | 11.5% | Equity |
| 2008 Crisis Year | -52% | +26% | Gold |
| 2020 COVID Year | -23% to +70% | +28% | Mixed |
When to Choose Each
Choose Equity SIP When
Choose Gold When
Smart Allocation: 80% Equity + 10% Gold + 10% Debt
For most investors, the optimal approach is to keep 80% in equity SIP for growth, 10% in gold (via SGBs or gold ETFs) for diversification, and 10% in debt for stability. Rebalance annually.
Frequently Asked Questions
Common questions about SIP vs Gold
Is SIP better than gold for long-term investment?
Over 10-20 year periods, equity SIP has historically outperformed gold in India. Equity SIPs have delivered 12-15% CAGR while gold has delivered 9-11% CAGR. However, gold acts as a hedge during market crashes and economic uncertainty, so both have a role in a diversified portfolio.
Should I invest in physical gold or gold funds via SIP?
For investment purposes, gold ETFs or Sovereign Gold Bonds (SGBs) are better than physical gold. SGBs offer an additional 2.5% annual interest plus capital gains tax exemption on maturity. Gold ETFs offer high liquidity. Physical gold has making charges (10-20%), storage costs, and purity concerns.
How much gold should be in my portfolio?
Financial advisors recommend 5-15% of your portfolio in gold as a diversification strategy. Gold acts as a hedge against inflation and geopolitical uncertainty. The remaining 85-95% should be in equity (via SIP), debt, and other instruments based on your goals and risk profile.
Does gold beat inflation consistently?
Gold has largely kept pace with inflation over very long periods (20+ years) but does not consistently beat it in every decade. In contrast, equity has historically beaten inflation by 5-8% per annum. Gold is better viewed as a store of value rather than a wealth creation tool.
What about gold during a stock market crash?
Gold tends to perform well during market crashes and economic uncertainty, acting as a safe haven. During the 2008 crisis, gold rose ~26% while equities fell ~52%. This negative correlation makes gold valuable for portfolio diversification, even if its long-term returns are lower than equity.
Start Building Wealth with Equity SIP
Complement your gold holdings with high-growth equity SIP for maximum wealth creation.
Disclaimer: Mutual fund investments are subject to market risks. Gold prices are subject to market fluctuations. Historical returns are indicative and do not guarantee future performance. The comparison above is for educational purposes only. | Trustner Asset Services Pvt. Ltd. | ARN-286886