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Equity – The Real Gold

By   /   November 25, 2018  /   No Comments

GOLD VS SENSEX RETURNS

Gold is the asset class which can be seen in almost every household. It’s the most trusted asset for years & every year you add more to your portfolio in the form of jewellery. And once you buy it, you never sell it.

But when it comes to equity or equity linked mutual funds, you hardly buy it. And if you buy it then you track it at every point in time and look for opportunity to exit it.

Let’s have a look at following chart. The chart shows that price of 10gm of gold back in year 1979 was Rs.937. In the year 2017, price of gold has become Rs.28,000 per 10 gm. Rate of return for this investment comes out to be 9.27% per annum.

 

Whereas during the same time period, sensex has given close to 16.25% return per annum.

DATEGOLD PRICE (Rs.)SENSEX
April 1, 1979937-100
July 17, 20172800032000
 RATE %9.27%16.24%

 

Let’s have a look at the present value of Rs.10,000 invested in year 1979 both in Gold & Sensex.

 

Investment year: 1979

Current year: 2017

Investment Time: 38 years

Amount invested: Rs.10,000

 

Gold: Return in 38 years        Rs.3,00,000

Sensex: Return in 38 years    Rs. 30,00,000

 

3 lakh vs 30 lakh in 38 years. That’s a huge difference.

 

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  • Published: 3 months ago on November 25, 2018
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  • Last Modified: November 25, 2018 @ 7:05 pm
  • Filed Under: Mutual Fund

About the author

Hi My name is Hari Om Tripathi. I am an engineer by chance & a Personal Financial Planner by choice. Currently residing in Kanpur & writing full time for Financial Kundali. In case you have any query about Personal Financial Planning such a buying a MF or ULIP, going for a life insurance plan or a term plan, to surrender your policy or not or any other questions related to your Personal Financial Planning, write to me at financialkundali@gmail.com

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