Do Nifty's 10-year real returns outperform gold and PPF?

Yes, Nifty's 10-year real returns of 8% (real returns) outperform gold's 4%+ and PPF's decently positive number. Shenoy's analysis shows the Nifty Index peaked at 8.4 per cent, highlighting its superiority against inflation compared to these assets.

What does the Rolling Real Returns Above Inflation graph show?

The graph compares 10-year returns for the Nifty Index, Gold, and PPF, revealing disparities in their performance against inflation. It specifically highlights the Nifty Index's 8.4 per cent peak, though with significant swings in performance.

Why are equities considered good for a bit?

Equities, represented by the Nifty Index, have shown strong performance with 8.4 per cent returns, but Shenoy notes they come with significant swings. This suggests equities offer higher returns but with more volatility compared to assets like gold and PPF.

Livemint: Nifty’s 10-year real returns outshine gold, PPF against inflation

Capitalmind CEO Deepak Shenoy shared an insightful analysis on X, revealing the long-term real returns across key asset classes like the Nifty Index, gold, and PPF, adjusted for inflation. His “Rolling Real Returns Above Inflation” graph highlights the Nifty's 10-year real returns at 8.4%, gold at 4.8%, and PPF at 2.5%. Shenoy pointed out that while equities have been strong performers over the past decade, gold has provided steady returns as a safe-haven asset, and PPF continues to offer stability for risk-averse investors.

12 Sept 2024CM Team1 min read

Quick Facts

Do Nifty's 10-year real returns outperform gold and PPF?: Yes, Nifty's 10-year real returns of 8% (real returns) outperform gold's 4%+ and PPF's decently positive number. Shenoy's analysis shows the Nifty Index peaked at 8.4 per cent, highlighting its superiority against inflation compared to these assets.
What does the Rolling Real Returns Above Inflation graph show?: The graph compares 10-year returns for the Nifty Index, Gold, and PPF, revealing disparities in their performance against inflation. It specifically highlights the Nifty Index's 8.4 per cent peak, though with significant swings in performance.
Why are equities considered good for a bit?: Equities, represented by the Nifty Index, have shown strong performance with 8.4 per cent returns, but Shenoy notes they come with significant swings. This suggests equities offer higher returns but with more volatility compared to assets like gold and PPF.

Livemint: Capitalmind CEO Deepak Shenoy recently shared valuable investment insights on social media platform X. In a post on September 10, Shenoy presented an analysis of long-term investment returns that highlights the impact of inflation on various asset classes.

“Nifty 10 year returns, above inflation, are about 8% (real returns). Gold is also 4%+! Even PPF is a decently positive number. But equities have been quite good for a bit,” Shenoy posted on X and shared a graph.

Shenoy’s “Rolling Real Returns Above Inflation” graph compares 10-year returns for the Nifty Index, Gold, and Public Provident Fund (PPF), revealing disparities in the performance of major assets when adjusted for inflation.

The decade-long data ending in mid-2024 showed the Indian Nifty Index, inclusive of dividends, as a frontrunner, with returns peaking at 8.4 per cent, albeit accompanied by significant swings in performance.

(Read More at Livemint)