On 1 April 2019, the BSE Sensex climbed the peak of 39,000 points for the first time. The 30-share Sensex, India’s oldest stock market index, also completed 40 years on the same day. The Sensex was launched in 1986 but 1 April 1979 is the base year when the index was set at 100.
The Sensex gave a compounded annual growth rate (CAGR) of 16.1% in the period from 1979 to 2019. If you take the total return index, then this is well over 17%. In the same period, gold gave a rupee return of 10%.If you had invested ₹10,000 in a basket of stocks representing the Sensex and the same was rebalanced every time the Sensex underwent a change, then your corpus today would be over ₹45 lakh. The same amount of money invested in gold over the same period would be worth ₹4 lakh today and in bank fixed deposit would have grown to a little over ₹2.5 lakh, without factoring in the tax
The current meltdown in equity need not be taken as standard. These fluctuations in the long run enables good rate of return
No comments:
Post a Comment