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Gold Beats Nifty 50 in Short-Term Race
27 Jun
Summary
- Gold ETF investment grew significantly over one to five years.
- Nifty 50 ETF investment declined over the past year.
- Long-term returns for gold and Nifty 50 are broadly similar.
Gold has outperformed India's Nifty 50 index over the short to medium term. Data from June 25, 2026, shows that a ₹1 lakh investment in Nippon India ETF Gold BeES over the past year would have grown to ₹1.43 lakh. In contrast, the same investment in the SBI Nifty 50 ETF would have decreased to ₹96,460.
Over a five-year period, the gold ETF saw its ₹1 lakh investment grow to ₹2.81 lakh, while the Nifty 50 ETF yielded ₹1.60 lakh. However, the performance gap narrows over longer investment horizons. For a 10-year span, the gold ETF investment reached ₹3.95 lakh, compared to ₹3.33 lakh for the Nifty 50 ETF, indicating broadly similar long-term returns.
While gold delivered higher returns and better risk-adjusted performance in the short to medium term, it also exhibited higher volatility. The analysis suggests that over the long term, both gold and the Nifty 50 have proven to be effective wealth creators, generating comparable returns for investors.
