100 rupees invested in 1985 has become this much today, Gold, Sensex or FD, which made investors the richest?
Over the past 40 years, gold has served as a powerful shield against inflation and market downturns. Data shows that ₹100 invested in 1985 grew to ₹13,484 in the Sensex, but with significant fluctuations. Meanwhile, gold safely recovered to ₹6,518, while bank FDs lagged behind even in beating inflation.
Gold vs Sensex vs Deposits: In the world of investment, a common man always has a question in his mind: where to invest money that is both safe and profitable.
In times of market uncertainty and inflation, this decision becomes even more difficult. Data from the last four decades largely solves this puzzle.
A report by WhiteOak Capital compares the performance of gold (gold), stock market (Sensex) and bank deposits (FD) from 1985 till now, i.e., over the last 40 years. This report not only tells the story of returns, but also reveals which asset class has stood by the investor during difficult times.
Who won?
If we turn back the clock and assume an investor had invested ₹100 each in gold, a bank deposit, and the stock market in 1985, what would their fortunes be like today?
According to statistics, by March 2025, that ₹100 invested in gold would have grown to ₹6,518. Meanwhile, in bank deposits, this amount would have grown to ₹2,100.
The most surprising statistic here is the stock market. An investment of ₹100 in the BSE Sensex would have yielded ₹13,484. This statistic suggests that the stock market is the best, but it also carries a significant risk factor. The Sensex's returns have been achieved after significant fluctuations, while gold has consistently provided the benefits of compounding.
Why did FD lag behind?
The report shows that growth in bank deposits has been extremely slow. If we exclude inflation, the real value of ₹100 in an FD in 1985 would be only ₹1,478 today.
Decade-wise, equities underperformed gold at several junctures, such as 1995, 2005, and 2015. This proves that it's not easy to become rich by relying solely on traditional methods or the stock market. Building 'real wealth' without proper asset allocation is a daunting challenge.
When the market fell, gold shone
Gold is known as a "crisis companion" in the investment world, and statistics bear this out. Financial history bears witness to the fact that whenever the stock market has crashed, gold has provided support to investors' portfolios.
For example, in fiscal year 2020, when the Sensex fell by a massive 22.9%, gold delivered a remarkable positive return of 29.7%.
Similarly, in fiscal year 2012, the Sensex fell 9.2%, while gold jumped 32.9%. Since 1985, gold has delivered an average annual return (CAGR) of 10.2%, significantly outperforming both bank deposits and inflation.
Disclaimer: This article is for informational purposes only and should not be construed as investment advice.