Turning Rs 50 lakh into Rs 2 cr: 10-yr growth of equity, gold, real estate

Here is how Equity, Gold, and Real Estate performed over 10 years

When you invest a substantial sum of money, say Rs 50 lakh, you expect the value of your investment to grow. However, as many investors have discovered over the past decade, the performance of assets varies significantly depending on the class of asset you choose to invest in, and even the location. This is especially true for real estate, where returns are often highly location-specific. 1 Finance Research, a personal finance advisory firm has decoded how Rs 50 lakh invested across various assets has performed over the last 10 years. 

10-year performance from Rs 50 lakh

• Equity: Grew to Rs 1.77 Cr (13.5% p.a.)
•  Gold: Grew to Rs 1.55 Cr (12.0% p.a.)
• Gurugram: Rs 50 lakh grew to ₹2.24 Cr (16.2% p.a.)
• Greater Mumbai: Rs 50 lakh grew to Rs 0.87 Cr (5.7% p.a.)

 

The Allure of Equity: Rs 1.77 Crore After 10 Years

Equity markets have always been a popular choice for long-term investors, and the last decade was no exception. A ₹50 lakh investment in equity grew to a whopping ₹1.77 crore, generating an annual return of 13.5%. Equities have historically outperformed other asset classes in the long run, and the last 10 years are no different. However, it’s important to remember that equity returns come with a higher risk, as markets can be volatile and unpredictable in the short term. 

 

Gold: A Steady Performer

Gold, often considered a safe haven asset, has also delivered strong returns over the last decade. ₹50 lakh invested in gold grew to ₹1.55 crore, achieving an annual return of 12%. Gold is seen as a hedge against inflation and economic uncertainty, making it an attractive asset for conservative investors. Over the past 10 years, while the returns weren't as high as those from equities, gold has provided steady and stable growth, especially in times of market turbulence.

 

Real Estate: Location Is Everything

Real estate, the traditional favorite for Indian investors, has delivered varied returns depending on location.

 

Gurugram: In some parts of India, real estate has been a gold mine. Take Gurugram, for example. A ₹50 lakh investment in real estate here grew to Rs 2.24 crore over the last decade, delivering an exceptional annual return of 16.2%. This outperformance can be attributed to the rapid development and urbanization in areas around Delhi, making Gurugram a prime spot for real estate investment.

 

Greater Mumbai: In contrast, real estate in Greater Mumbai, despite being one of India's most expensive markets, grew only to ₹87 lakh, yielding a much lower 5.7% annual return. This disparity highlights the challenges of investing in highly saturated, expensive markets, where high property prices can suppress the overall returns. 

Source: 1 Finance Research

*Data as of 31st March, 2025. Annual returns are based on total returns generated by each asset class (Price appreciation +

Interest/Dividend/Rental Yield)

#Real estate returns are based on 1 Finance's Housing Total Return Indices

 

The lesson here is clear: Real estate is highly location-specific. While some cities and regions have seen tremendous growth, others have lagged behind. This means that investors need to carefully consider the local economic environment, infrastructure developments, and other factors before deciding where to invest.