According to a recent study by Cians Analytics on the returns from various asset classes in India during 1991-2013, real estate and equity market have given maximum returns to investors.
The study covers five types of asset classes — equities (BSE Sensex), commodities (gold), bank fixed Deposits (1-3 year maturities), government securities (10-year maturity), and real estate.
Looking at the overall returns, the study noted that “real estate appears to have outperformed all other asset classes during the 23-year period with an annualised rate of 20%.
After real estate, equities have also performed strongly in India as the stock market gave a healthy annualised return of 15.5% on a nominal basis during the past 23 years. However, adjusting for inflation, the real return is only 7.1% per annum. The study also explored gold, government securities and fixed deposits at banks, which were found to have posted comparatively lower returns of 10.9%, 9.7% and 8.8% respectively for the 23-year period.
