Gold vs SIP: What Gives Higher Returns Over 15 Years?

Gold vs SIP: It takes long-term financial planning to build wealth through steady savings. Selecting the right savings instruments could be difficult with so many investment possibilities on the market. Nonetheless, among the most well-liked savings options for investors of all income levels are gold, mutual funds, and fixed deposits. In this, the most preferred ones are gold and stocks. Most people don’t understand which is better and which can grow. Despite their apparent appeal, gold and stocks both have advantages and disadvantages of their own.

The potential for enormous returns, sometimes more than twice that of FDs, exists for equity mutual funds. However, for those who are risk-averse, gold is a highly favored asset. Many have found the yellow metal to be a safe-haven investment option because of its consistent returns. According to historical patterns, gold investments should yield returns of about 10% annually.

Let’s now understand which is the better option. If we are looking for a long-term investment plan for at least 15 years, both the gold and mutual funds SIPs can be the best option. It is just the decision of taking your risk towards your financial planning.

❂ A Detailed Understanding of Mutual Funds & Gold Investments:

❂ Mutual Funds Investments:
Tenure 15 Years
SIP Amount: Rs 5000 Monthly
Expected Returns: 12%
Estimated Returns: Around 16,00,000
Total Value: Around 25,00,000

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❂ Gold Investments:
tenure: 15 Years
SIP Amount: Rs 5000 Monthly
Expected Returns: 10%
Estimated Returns: Around 11,00,000
Total Value: Around 20,00,000

Looking at these numbers, mutual funds are very attractive; still, there is a lot of risk involved in this, also the market value is involved. Coming to the gold investment, there won’t be any certain numbers, but still, this is going to be the safest option. People who prefer the safest option can go for gold, and people who want to take risks can opt for mutual funds.

❂ Note: All this information is for educational purposes only. For any financial advice or any investment recommendations, it is advised to consult a certified financial advisor.