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Gold Vs Silver Vs PPF Vs Fixed Deposits Vs BSE Sensex – 30 Year Returns

March 15, 2011

We have received e-mails on which is the best Long Term [for over 20 years] Investment. Since Real Estate is completely a Black Money Market sponsored by the Government & Politicians in India and lacks real data, hence we excluded it from the study and here is what data of past 30 years suggests on investments in Gold Vs Silver Vs PPF Vs Fixed Deposits Vs BSE Sensex [Equities].

Data is compared from March-1981 till March-2010 and is as follows
Gold has yielded a Compunded Annual Growth Returns [CAGR] of 8.8%
Silver has yielded a CAGR of 10.2%
Fixed Deposit in Banks gave a CAGR of 9.25%
PPF – Public provident Fund has yielded a whopping double digit return – 10.75% [Tax Free]
Nothing could beat the BSE Sensex which has given a CAGR of – 16.5% in the past 30 years.

Well history may not repeat with Indian economy in sync with the Global World. However, Indian investors can go for a spread with all the above asset classes with a skew towards equity as only this asset class can beat the Inflation shock your MLAs & MPs give you. We definitely recommend investing in PPF / EPF for various tax benefits as well as liberal returns.

For the little risky ones like us, we are heavily invested in Equities – 90% and hope to remain so for the next 10 years as this will be the last leg of high growth in India. For investment consultation [Min Rs 10 Lakh], you can send an e-mail to feedback @ dalalstreet.biz.

Comments

2 Responses to “Gold Vs Silver Vs PPF Vs Fixed Deposits Vs BSE Sensex – 30 Year Returns”

  1. chul bul pandey on April 9th, 2011 11:45 AM

    gold-silver-ppf-fixed-deposits-bse-sensex-30-year-returns/
    with reference to your article, i think u have used the wrong data while calculating the returns. so if u have any proof, then prove me wrong . as silver has given the most returns in last 30 years…
    since i m your regular reader n a fan, i think i deserve an answer.

  2. CP on April 18th, 2011 10:34 AM

    You can see the Historical Data widely available on the Web and calculate XIRR, you will have the results.

    Thanks.

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