According to reports from Upstox, gold-linked businesses have significantly outperformed physical gold investments over the past decade. Muthoot Finance delivered the highest returns among the three assets, with stock prices surging from ₹232.4 in May 2016 to nearly ₹3,300 in May 2026. A ₹1 lakh investment would have grown to over ₹14.2 lakh, translating to an absolute return of 1,319.9% and 30.3% CAGR. Titan also delivered strong performance, rising from ₹360.5 to nearly ₹4,100, generating an absolute return of 1,037.3% and 27.5% CAGR. Physical gold prices also appreciated significantly, rising from ₹28,500 per 10 grams to nearly ₹1,60,000 per 10 grams, but with a lower absolute return of 461.4% and 18.83% CAGR.
As reported by Upstox, Muthoot Finance benefited from significant growth in the Indian gold loan industry, which has been growing at a CAGR of over 11% in recent years. The company's performance was driven by rising gold prices that boosted borrowing power of individual customers and increasing penetration in tier 2 and 3 cities. Higher loan disbursements generated consistent interest income and strong cash flows for the company. Titan outperformed through strong business expansion, brand value creation, robust sales volume, and market share gains in the organized retail jewellery segment.
According to the analysis, gold plays an important role in India's cultural, economic, and financial ecosystem, with many investors considering it a traditional safe-haven asset. Jewellery companies like Titan and Kalyan Jewellers India, which generate over 90% of their revenue from the jewellery segment, convert physical gold into value-added products. NBFCs like Muthoot Finance and Manappuram Finance use gold as collateral to provide short to medium-term loans to consumers. Despite lower returns compared to gold-linked stocks, investors continue to buy physical gold for portfolio diversification, as gold generally performs well during uncertain times like market crashes, economic slowdowns, wars, or financial crises.
