The year 2024 was anything but predictable for investors. While gold glittered the brightest, equities delivered mixed results, and real estate continued to test investors’ patience. But numbers tell the clearest story—so let’s see what ₹1 lakh invested in each of these asset classes at the start of the year would have grown into by December 2024.
Gold proved yet again why it’s called a safe haven asset—the kind of investment people turn to when there is geopolitical and economic uncertainty.
In 2024, the price of 22-karat gold in Kerala surged by 21.43%. That means ₹1 lakh invested in gold at the start of the year would have grown to ₹1,21,430 by year-end.
Interestingly, this return would have been even higher if not for the Union Budget’s decision to cut the effective import duty on gold from 15% to 6%, which led to a corresponding drop in domestic prices. Gold prices maintained their upward momentum throughout the year, driven by persistent geopolitical and economic uncertainties. This rally was further fuelled by large-scale purchases from central banks as nations moved to diversify their foreign exchange reserves away from the US dollar.
The stock market had a strong run through the year before losing momentum in the later months.
The Nifty 50, the benchmark index for equities, surged 21% by September. However, it faced a sharp correction as foreign institutional investors (FIIs) offloaded shares, driven by concerns over high valuations and more attractive opportunities in global markets. At the close of the year, the index closed 8.80% higher. A ₹1 lakh investment in the Nifty 50 would have grown to ₹1,08,805 by the end of 2024.
Midcap stocks had a more dramatic year. The Nifty Midcap 100 soared 32% at its peak before facing a correction but still closed the year with a 23.86% gain. This impressive return came despite widespread concerns about stretched valuations, with many investors cautioning against overheating in the midcap segment. If you had invested ₹1 lakh in midcaps, it would have grown to ₹1,23,858—rewarding those who stayed invested despite the warnings and volatility.
Fixed deposits stuck to their usual script—offering steady, low-risk returns.
With 1-year FD rates ranging between 6.5% and 7.5%, ₹1 lakh invested in a fixed deposit would have grown to anywhere between ₹1,06,500 and ₹1,07,500 by the end of the year.
It’s no surprise that FDs continued to be a favourite among conservative Malayali investors looking for safety over thrills.
According to the National Housing Bank’s Housing Price Index (HPI)—a government-backed measure that tracks residential property price trends—Kerala’s real estate market showed mixed results in 2024.
• Kochi saw prices rise by 5.98%, which means ₹1 lakh invested in property here would be worth ₹1,05,980.
• Thiruvananthapuram, however, saw a 2.16% drop, meaning ₹1 lakh would have shrunk to ₹97,840—a worrying trend for investors banking on real estate for long-term gains.
With property prices in Kerala showing mixed trends, 2024 highlighted the importance of carefully evaluating real estate investments rather than relying on them as guaranteed wealth builders.
2024 highlighted the importance of diversification in investing. While gold and midcap stocks delivered strong returns, large-cap stocks and fixed deposits provided stability, and real estate showed mixed results. Spreading investments across different asset classes proved to be the key to balancing risk and reward. As we move into 2025, having a diversified portfolio remains the smartest approach to growing and protecting your wealth.
