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Gold Can Threaten SENSEX But Not Our Recommendations of Equity Basket

January 26, 2012

For a minute even I was surprised as I saw the report of Gold beating SENSEX as I had a quick glance on the table of Jr. Analyst. However, it is well known fact that our Recommendation of Equity Basket has outperformed the Gold in 15 year period. We have to prove the same else get our office decorated with Eggs and Rotten Vegetables 🙂

You all know that we have recommended investments in HDFC Top 200 Fund, HDFC Equity Fund, HDFC Tax Saver Fund, Reliance Growth Fund etc. Let us see their performance in the past 15 years.

Gold CAGR Pre-Tax Return is 12.7% in 15 Years

We will compare two Models – Once is Lumpsum Investment Did 15 years Ago and Other is SIP investment over the last 15 years.

HDFC Top 200 Fund
The Fund since inception is little over 15 years and at NAV of Rs 190, will yield a CAGR return of 21.6% beating Gold very easily 🙂
SIP Returns of HDFC Top 200 Fund is 22.76% as shown in the Table Below

HDFC Equity Fund
This fund in its 16 years since inception has delivered 22% CAGR better than Gold again 🙂
SIP Returns of HDFC Equity Fund in last 15 years is 26%, once again better than Gold.

HDFC Tax Saver Fund
Lumpsum Investment in this fund 16 years ago will yield 21% over a period of little less than 16 years beating Gold very easily.

SIP Returns in HDFC Tax Saver Fund is a whopping 27% in the last 15 years, once again beating Gold Easily 🙂

Reliance Growth Fund
Reliance Growth Fund since inception in 1995, has given a CAGR yield of 24.7%. SIP Returns of this is not available in their fact-sheet. But that must be comparable to all of the above and should be in excess of 20% as well.

Many Stocks have beaten Gold in the last 15 years that are covered on this journal at various stages. So Bottom-line – Majority Exposure to Diversified Equity Asset Classs and then Selectively towards Commodities and Industrial Metals.

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