The market doesn’t repeat—but it sure does rhyme.
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If you had ₹1 lakh to invest every year for the past 30 years, where would you have made the most wealth?
Geojit’s 1995–2025 data answers this with precision—and a few surprises.
Let’s dive into what this 30-year historical asset class performance reveals—and what every smart investor should learn (and unlearn) from it.
📌 Conclusion: Equity wins long-term, but Gold gives better protection during volatile times, and FDs may no longer beat inflation consistently.
📈 Performance Trends by Decade:
🟢 Equity (Nifty-500 & Sensex):
- Nifty-500 topped returns in 10 different years, with a stellar 16% CAGR in the last 10 years.
- However, it also had 8 worst-performing years, reminding us that equity is not a one-way ticket.
- Sensex shows more stability, but slightly lower upside compared to Nifty-500.
🟡 Gold & Silver:
- Gold has been the best performer in 8 years and had only one worst year. This makes it a strong hedge during equity turmoil (e.g. 2008, 2020).
- Silver is more volatile. High returns in some years (e.g. 2006, 2020), but also deeper crashes.
🔵 PPF & FD:
- PPF has been the most stable, showing consistent returns between 7.1–12%.
- Fixed Deposits, once the darling of Indian households, never topped the performance table even once in 30 years. Worse, in many years, they underperformed inflation.
🔴 Inflation:
- Average inflation over 30 years: 6.25%
- FD returns failed to beat inflation in multiple years, eroding real wealth.
🧠 What This Means for You?
✅ 1. Equity is essential—but Prepare for the Ride
- Action: Allocate a core part of your long-term wealth (50–60% if you’re under 40) in diversified equity funds or Nifty 500 index funds.
- Caution: Don’t exit during downturns. 2008, 2020, and even 2022 show temporary dips—recovery followed.
✅ 2. Gold Is Not Just Jewelry—It’s Insurance
- Action: Add 5–10% of your portfolio in digital gold, SGBs, or gold mutual funds to hedge market uncertainty.
- Bonus: It performs well during crisis years (2008, 2011, 2020).
✅ 3. Silver = High Risk, High Reward
- Action: Consider silver only if you understand commodity cycles. Allocate max 3–5% via silver ETFs or FOFs.
✅ 4. FDs Are for Parking, Not Growing
- Action: Use FDs for emergency or short-term goals—not long-term investing.
- Fact: FD failed to beat inflation in more than 10 years.
✅ 5. PPF is Safe, Stable, and Tax-Efficient
- Action: Invest in PPF for safe returns + tax deduction under 80C. Ideal for conservative investors or retirement planning.
💥 Asset Class Rotation: Why Timing the Market Is a Bad Idea
Here’s a snapshot of different “winners” each year:
- 1999: Nifty-500 +97%
- 2003: Nifty-500 +91%
- 2006: Silver +57%
- 2009: Nifty-500 +92%
- 2010: Silver +60%
- 2020: Silver +45%, Gold +30%
- 2024: Gold +22.6%
Trying to predict the next big winner every year is a gambler’s game. Smart investors diversify. Disciplined ones stay invested.
🔚 Final Thought
“History doesn’t repeat itself—but it does leave clues.”
The last 30 years of data is your biggest mentor. Ignore the noise, avoid chasing returns, and focus on balanced, goal-based investing.
Let compounding do its job.
📣 What Are You Investing In?
Are you still clinging to FDs? Or starting your SIP journey?
Let’s talk money the smart way. 💬 Comment below and share this with someone who still thinks FD is the king of returns!
