5 min read
Gold is a safe-haven store of value; the Nifty 50 is India's blue-chip equity index. Over long periods equity has generally outpaced gold, but gold shines in crises and as a diversifier.
| Factor | Gold | Nifty 50 |
|---|---|---|
| Long-run return | ~9–10% p.a. (historical) | ~11–13% p.a. (historical) |
| Role | Hedge / safe haven | Wealth creation |
| Income | None (no dividend) | Dividends + growth |
| Volatility | Moderate, low equity correlation | Higher, market-linked |
| LTCG tax | 12.5% after 24 months | 12.5% over ₹1.25L, after 12 months |
Verdict
Over long horizons the Nifty 50 has typically delivered higher returns than gold, but gold's low correlation makes a 5–15% allocation a useful diversifier that cushions equity crashes. Past returns don't guarantee future ones.
Sources
Reviewed against primary sources. Rates and rules change — confirm current figures with the official source before acting.
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