CAGR Benchmarks: What Good Returns Look Like in India

Is 12% CAGR good? Is 8% bad? Here are historical CAGR benchmarks for every major Indian asset class to calibrate your expectations.

1.Equity benchmarks (Sensex/Nifty)

Nifty 50 CAGR over different periods: **10 years (2016-2026): 12.8%**. 15 years (2011-2026): 11.4%. 20 years (2006-2026): 12.2%. 30 years (1996-2026): 13.1%. The long-term Indian equity CAGR is remarkably consistent at 12-13%. A mutual fund that beats 14% CAGR over 10 years is in the top quartile. Anything below 10% over 10 years has underperformed the index.

2.Fixed income benchmarks

PPF: **7.1%** (current, tax-free — pre-tax equivalent ~10.1% for 30% bracket). FD (SBI): **6.5-7.25%** (pre-tax). NSC: **7.7%** (pre-tax). EPF: **8.25%** (tax-free). Gold: **10.8% CAGR** over 10 years (2016-2026 in INR). Real estate (all-India average): **5-6%** CAGR (city-specific: Mumbai 7-8%, Bangalore 8-9%, tier-2 cities 3-5%).

3.Inflation-adjusted (real) returns

India's CPI inflation averaged **5.5-6.0%** over the last 10 years. Real returns: Equity 6-7%, PPF 1.1%, FD (post-tax) -0.5 to 0%, Gold 4-5%, Real estate 0-3%. The only asset class that consistently beats inflation after tax is equity. This is why financial planners insist on equity for long-term goals despite the volatility.

4.Key takeaway

If your equity portfolio is delivering 12%+ CAGR over 10 years, you're doing fine. If it's below 10%, you're underperforming the index and should consider index funds. For fixed income, PPF at 7.1% tax-free is the gold standard. Use our CAGR calculator to measure your actual portfolio CAGR and compare against these benchmarks.