Historically Sensex has given anywhere between 15-20% return (Average 17.5%) in the long run since its launch. Let us discuss last 20-30 years Sensex returns.
The 30 Stocks Sensex was launched in the year 1979 with the base value of 100. Today after 30 years, the Sensex is trading around the level of 14,000.
So if we run the compound interest calculator on spread sheet than it is 17.5% Compounded Annual Growth.
It means that Historically the Sensex has given 17-18% Compounded Annual Return in the long run.
That’s a good return. Because the last 20 years of the Indian stock market were full of ups and downs. The Indian Stock market has suffered great swings from Harshad Mehta (1992) to Raju Ramalinga (2008).
It means that, from this Historical Data, we can expect the future return of 17-18% per Annum in the long run from Sensex which is much better return than any other Asset Class available in the market.
So if you start investing in Stock market today than You can expect 15-20% per Annum return in the long run from your investments.
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