Gold or stocks or mutual funds? Spread your investments for consistent returns

No one asset outperforms others consistently over time. In the past one year, equity mutual funds and government securities gave higher returns than other assets. Over 10 years, it's gold that beats all other asset classes. For consistent long-term gains, put your eggs in several baskets.

Of course, returns is only one of the three criteria to look for before investing--safety and liquidity are the other two. Government securities, the safest investment option, matched returns from equity funds last year. But this is a rare occurrence.







Sources: Value Research and industry sources

GOLDEN DECADE
Rs. 1 lakh invested in gold a decade ago (January 1, 2007) is worth nearly 3.5L today. None of the other four assets have trebled in value during this period.

HIGH FIVE FOR EQUITY
Large-cap stocks and equity mutual funds were the clear winners in the fi ve-year period between 2012 and 2016—almost double in value. Returns on gold slipped to negligible.

SAFE AND SOUND In the last one year, government securities equaled equity funds in return. Returns on funds were more than double the returns from direct investment in equity.

Real estate has been kept out of the comparison because returns on property vary hugely between cities and within a city.