Investment Advisors hide this from You | Startup | Sarthak Ahuja

In the past 24 years, Gold has given better returns than the NIFTY50!

Today, I downloaded the data of NIFTY50 since 1990 from the NSE website, and put the index values against the gold rate for 24K 10 gms since 1990...

Turns out, over the past 24 years since 2024 - Gold has given a CAGR of 12.4% p.a...

Whereas NIFTY50 gave a return of 11.8% p.a.

Even when you look at data since 2010, over the past 14 years, gold has given a return of 10.3% p.a. whereas NIFTY gave 10.9% p.a.

Now, over the past 4 years, gold has increased at 10.7% p.a. while NIFTY has risen by 28.4% p.a.

Here, I feel we should look at the following perspectives:

👉🏼 It’s not gold that has caught up with NIFTY, but NIFTY that has caught up with gold... Gold is rising at a rate it normally does.

It’s just that the index has given crazy returns over the past 4 years, and now when gold and the index are at the same level

👉🏼 Purely on the basis of the correlation in this chart, stock markets should cool down for a while after the elections to maintain equilibrium in returns...

Because it does not represent a full capital market cycle of ~7 years

👉🏼 The parallel economy finds it hard to invest cash in NIFTY, but can invest in gold - which means their incentive to declare their incomes to the govt so as to invest that money for better returns is actually negative

👉🏼 Everyone who talks about how the stock markets give a better risk adjusted return than any other asset class are incentivized to sell stocks and mutual funds through commissions, while the gold lobby does not market it as loudly...

And that means maybe when we say keep more of your funds in stocks and less in gold is unfair - it can be an equal split... through SGBs the return would be even higher!!!

What do you think?

-------------------------------------------------------------------------------------------------------------------------
Click here to subscribe to my YouTube channel: https://bit.ly/3cpTleK
-------------------------------------------------------------------------------------------------------------------------

Like, Share, Subscribe for more!

Follow me on my other social media handles for all updates, events and live sessions-
Instagram: https://www.instagram.com/casarthakah...
LinkedIn: https://in.linkedin.com/in/sarthak-ah...
Website: http://www.casahuja.com/
-------------------------------------------------------------------------------------------------------------------------

A Chartered Accountant with about 10 years of experience in areas of Tax Advisory, Startup Consulting, Fundraising, Audits, Deal Advisory, Business Modelling and contract CFO services.

Winner of the ISB Young Leader Award 2017 and the Best All Rounder, PGP Class of '17, Sarthak has also been published about in the leading financial newspapers such as The Financial Express as possibly the youngest Indian to have completed the courses of CA, CS and CMA along with a graduate degree in Financial & Investment Analysis from University of Delhi, all by the age of 23 years.

Видео Investment Advisors hide this from You | Startup | Sarthak Ahuja канала Sarthak Ahuja