Gold vs Titan vs Muthoot Finance: Who delivered higher returns on ₹1 lakh investment in last 10 years

Gold plays an important role in India’s cultural, economic, and financial ecosystem. Many investors consider physical gold as a traditional safe-haven asset whose value increases through price appreciation in the long run. However, gold is a foundation for many businesses in India.

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 like jewellery of different shapes, designs and weights. Meanwhile, NBFCs like Muthoot Finance and Manappuram Finance use gold as collateral to provide short to medium-term loans to consumers. Gold also provides backing for Gold ETFs (Exchange-Traded Fund), digital gold and many others.

Over the years, the investment returns generated by the gold-linked businesses have outperformed compared to holding raw physical gold.

As seen from the above table, Muthoot Finance delivered the highest returns among the three assets between May 2016 and May 2026. Muthoot Finance stock surged from around ₹232 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 1319% and 30.3% CAGR.

Muthoot Finance benefited from significant growth in the Indian gold loan industry, which has been growing at a CAGR of over 11% in the last few years, driven by rising gold prices, which boosted the borrowing power of individual customers and rising penetration in tier 2 and 3 cities. Higher loan disbursements generate consistent interest income and strong cash flows for the company.

Titan also delivered higher returns to investors over the last decade. The stock rose from around ₹360 in May 2016 to nearly ₹4,100 in May 2026. A ₹1 lakh investment would have grown to almost ₹11.39 lakh, generating an absolute return of 1,037% and 27.5% in CAGR terms. Titan outperformed through its strong business expansion, brand value creation, strong sales volume and market share gain in the organised retail jewellery segment.

Physical gold prices have also surged over the last decade from ₹28,500 per 10 grams in May 2016 to nearly ₹1,60,000 per 10 grams in May 2026. A ₹1 lakh investment in physical gold would have grown to nearly ₹5.6 lakh, generating an absolute return of 461% and a CAGR of 18.8%. However, bullion returns are lower compared to Titan and Muthoot Finance.

Despite lower returns, investors continue to buy physical gold as it plays an important role in portfolio diversification. Gold generally performs well during uncertain times like market crashes, economic slowdowns, wars, or financial crises when investors seek safe-haven assets. For instance, gold prices have appreciated by over 75% in the last one year amid uncertain scenarios like the US-Iran war, the Russia–Ukraine war, and the US trade tariffs.

Disclaimer:

The stock discussed in this article is only for educational purposes and not a buy or sell recommendation. Investors are advised to conduct their own analysis and risk due diligence before trading and investing in the stock market. Investments in the securities market are subject to market risk. Read all the related documents carefully before investing.