If You Want to Invest ₹5 Lakh, Gold or Nifty? What’s Better?

Investors putting money in gold and Nifty 50 are in search of higher returns. The question is, which of the two will perform better? Can investing in gold make you rich in 5 years? Or can this dream be fulfilled through Nifty 50? Both investments are not directly linked and may offer different outcomes over the short and long term. But the question remains – if you invest ₹5 lakh today, which will give you better returns in the next 5 years? Let’s analyze.

Over the last few years, due to increasing global economic uncertainty, the price of gold has also risen. On the other hand, Nifty 50, which represents the 50 largest companies in India, has returned only 4.68% in 1 year but has shown stable growth over a 5-year period.

From the perspective of higher returns, which would have been better for you – physical gold or Nifty 50? If you had invested ₹5 lakh in either 5 years ago, where would you be better off today? Let’s compare and understand which of these has significantly increased investor wealth over the last 5 years.

Gold Price 5 Years Ago vs Now-
On July 7, 2020, the price of 22-carat gold in Mumbai was ₹4,626 per gram. Today, the same grade of gold is priced between ₹8,861 and ₹9,000 per gram in the same city. In percentage terms, the price has increased by 91.54% over 5 years. So, an investment of ₹5 lakh in physical gold 5 years ago would be worth ₹9,57,700 today.

Nifty 50 Index Performance Over 5 Years-
The Nifty 50 Index closed at 25,522 today (July 8, 2025). Over 5 years, the index has increased by 135.76%. If you had invested ₹5 lakh in the Nifty 50 Index 5 years ago, your return would be ₹11,78,800 today.

From this, it is clear that although gold outperformed the Nifty 50 Index in a 1-year period, over the 5-year timeframe, gold has given significantly lower returns than the major index. So now you know which investment could help you become wealthy.

(Disclaimer- The information and suggestions provided in this article are based on general knowledge. We do not endorse them. Please consult a financial expert before making any investment decisions.)