4 days ago
Gold Outperforms Nifty 50 After Tax Over 20 Years
Imagine putting ₹1 lakh into the Nifty 50 and another ₹1 lakh into gold 20 years ago.
Before taxes, the Nifty 50 investment would have grown to about ₹8.98 lakh.
The gold investment would have grown to about ₹15 lakh.
When the investments are sold, taxes reduce the amount received.
The Nifty 50 gets a ₹1.25 lakh exemption on qualifying long-term gains.
Gold does not receive this exemption in the comparison.
Even after taxes, gold would be worth about ₹13.25 lakh, compared with ₹8.14 lakh for the Nifty 50.
These figures are estimates based on index and gold returns, not the exact performance of particular ETFs.
A ₹1 lakh investment in the Nifty 50 grew to about ₹8.98 lakh before tax over 20 years.
The same investment in gold grew to approximately ₹15 lakh before tax.
After estimated capital-gains tax, the Nifty 50 investment was worth ₹8.14 lakh, versus ₹13.25 lakh for gold.
The Nifty 50 benefited from a ₹1.25 lakh annual equity LTCG exemption, while gold did not.
Post-tax CAGR was estimated at 11.05% for the Nifty 50 and 13.79% for gold.
- Who
- Investors comparing a ₹1 lakh investment in the Nifty 50 and gold.
- What
- A comparison of 20-year pre-tax and post-tax investment values and annualised returns.
- Where
- When
- Over a 20-year period, using data stated as of 31 August 2026.
- Why
- To show how capital-gains taxes affect the final amount investors receive.
Nifty 50 Investment
Gold Investment
Pre-tax performance
Nifty 50 Investment
The Nifty 50 produced an annualised return of 11.6%, growing ₹1 lakh to about ₹8.98 lakh.
Gold Investment
Gold produced an annualised return of 14.5%, growing ₹1 lakh to about ₹15 lakh.
Tax treatment
Nifty 50 Investment
Qualifying equity long-term gains receive a ₹1.25 lakh exemption, with gains above that taxed at 12.5%.
Gold Investment
The comparison applies 12.5% tax to the entire long-term gain because the equity LTCG exemption does not apply to gold.
Post-tax outcome
Nifty 50 Investment
The estimated final value is ₹8.14 lakh, with a post-tax CAGR of 11.05%.
Gold Investment
The estimated final value is ₹13.25 lakh, with a post-tax CAGR of 13.79%.
Key facts
- Initial investment
- ₹1 lakh in each asset class
- Nifty 50 pre-tax value
- ₹8,98,016
- Gold pre-tax value
- ₹15,00,064
- Nifty 50 estimated tax
- ₹84,127
- Gold estimated tax
- ₹1,75,008
- Nifty 50 final value
- ₹8,13,889
- Gold final value
- ₹13,25,056
- Data source
- FundsIndia’s Wealth Conversations Report; data as of 31 August 2026
Sources
Related news
Capital Gains Tax Rules Vary Across Investment Assets
Gold’s Strong Returns Mask Long Periods of Weakness
India vs Global Equities: What 20 Years of Data Shows
Gold Offers Steadier Volatility Shield Than Silver, Data Shows
Gold and Silver ETF Leaders Shift Between Monthly, Annual Returns
Nifty 500 Data Shows Why 20% Equity Returns Aren’t Normal
Nifty Ends Winning Streak as 23,500 Resistance Holds Firm
Experts recommend multi-asset funds amid heightened market uncertainty
Oil Slips as Iran Talks Shape Sensex, Nifty Outlook
Nifty Ends Four-Day Winning Streak as IT, Financial Stocks Weigh
Zerodha Fund House Launches Nifty Next 100 ETF
