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Equity seems to be losing its charm as long-term returns disappoint

Gold, fixed income do well; Nifty50 stocks do not compensate for extra risk

The data suggests that the 10-year rolling return has been on a downward course for nearly seven years after touching a record high of 20.3 per cent in July 2013
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The data suggests that the 10-year rolling return has been on a downward course for nearly seven years after touching a record high of 20.3 per cent in July 2013

Krishna Kant Mumbai
Equity seems to be losing its charm as a preferred asset class, as investors raise questions on returns not compensating for the additional risk. Even as the Nifty50 Total Returns Index, which considers dividend payouts, earned 9.35 per cent a year returns over the past 10 years, the post office fixed deposit or Public Provident Fund has given returns of 8-8.7 per cent with almost no risk. Over three and five years, too, equities have fared badly.  

According to the data from the World Gold Council, the compound annual growth rate (CAGR) of gold was 8.45 per cent during the