Where to invest ₹5 lakh-Gold or Nifty 50?
Gold vs Nifty 50: Physical gold is a friend who is useful in difficult times, when equity is down or when inflation is overshadowed on your pocket, it is the best superior. Equity investment in the last 5 years has increased the assets of many investors manifold. It has created Raigs-to-Rakes stories, has established big names and has given opportunities for the common man to invest and benefit in India’s biggest businesses.
Investors who invest in Gold and Nifty 50 are looking for high returns. The question is, who will give better realization in both of them? Can investment in gold make you rich in 5 years? Or can this dream fulfill Nifty 50? Both investments are not connected to each other and can give different results in short-term and long term. But the question is still there that if you have appointed Rs 5 lakh, then who will give you more realism in the next 5 years, let us know.
Gold prices have also increased in the last few years amidst increasing economic uncertainty across the world. On the other hand, the Nifty 50, which represents India’s largest 50 companies, has given only 4.68 percent returns in 1 year, but has shown a steady increase in 5 years time.
For you, what better it would be in terms of high returns- Physical Gold or Nifty 50? If you had invested 5 lakh rupees in any one of them 5 years ago, where would you have been in better condition? Let us understand this through comparison that in the last 5 years, who has increased the property of investors faster.
Price of Physical Gold 5 years ago: We are taking the price of 22 carat gold in Mumbai 5 years ago and today. On 7 July 2020, the price of gold in Mumbai was Rs 4,626 per gram. Today, the price of gold of the same quality is between 8,861 to 9000 rupees per gram in the same city. According to percentage, the price has increased by 91.54 percent in 5 years. Investment of Rs 5 lakh in physical gold 5 years ago has increased to Rs 9,57,700 today.
Nifty 50 index performance in 5 years: The Nifty 50 index closed today (8 July 2025) closed at 25,522. The increase of the index in 5 years is 135.76 percent. If you had made a Rs 5 lakh rupees 5 lakh rupees 5 years ago, then you got a reprise of Rs 11,78,800 from the Nifty 50 index.
This shows that despite beating the Nifty 50 index over a period of 1 year, gold is far below the main index return over a period of 5 years. So now you know that you can become rich by exposing it.
