Average Return Per Annum from the Indian Stock Market

What is the Average return per annum from the Indian Stock Market since last 20 years?

The Sensex has been launched since April 1979 with the base value of 100 and today in mid 2009, the level of the Sensex is around 15,000. So What is the average historical return from the Indian Stock Market?

I have run the Compound interest calculator to calculate the average return of the Indian Stock Market. According to the Compound interest Calculator, the Historical Average Sensex return per annum in last 30 years is 18.5% per annum.

Yes, Since 1979 to 2009, The Sensex has given 18.5% Compounded annual return on and average.

This includes all the stock market crashes, scams & Bulls. Even if we count the last year of Recession, than also Sensex has given the investors 18.5% average compounded annual return.

Now, I have compared these returns with every other asset classes such as Bonds, Gold & Real Estate. No other Asset class has ever given this much return consistently on and average since last 30 years.

In the recent past, People are attracted towards investing in Gold. But still, Equity has outperformed any other Asset class in this world. So What it suggests? Well, it suggests that in the long run, the risk from Equity is eliminated and the equity can give you handsome returns.

In the short term, equity is volatile but over the long period of time Equity can beat the returns of all the other asset classes. Equity can also beat the 2 major killers of the money,

01) Inflation &
02) Tax

So Even though, this is a Global Economic slowdown, You should invest in Equity for longer time horizon (More than 5 years)….