Archive · 19 Sep 2026
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.
- 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%.
- 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