Archive for February, 2016

Keep walking

Tomorrows ‘cheerful’ headlines are being written today : “Mayhem in the markets” &  “Blood bath in the street ” are all time favourites. This will make investors bit nervous, but what is the data saying :

Sensex is currently 23000, it was 30000 at some point last year, and from that level is down more than 20%, this sounds scary, but is it so actually?  Let us see what scary things happened to investors who bought in at various points over last few years :

2 year returns :

In Feb 2014 , index was at 20400, if you bought back then and held the return would be around 6% p.a, not great but definitely not ‘blood bath’ or some such nonsense. this is for index, most of us invest in equity funds in a mix of large and multi-cap funds , let us see the returns there :


3 Years  : Min 7.5% p.a & max 22% p.a

5 Years : Min ~7.5% p.a and max 18% p.a think the average returns would be around 10-11% p.a

10 Years : Min 10% for index fund ( which i don’t suggest for investors) whereas active funds is around 12% and max 16%, think the average would be 13% p.a

These are the returns one would have got as of yesterday by investing 3,5,10 years before. All the screaming headlines of blood bath and mayhem gave this kind of returns to patient investors,

SIP returns for the above period too have been same or higher than the above returns ( ~10% pa for large-cap funds and 15% for multi-cap funds over 5 years and 11% to 18% over 10 years)

So move away from the headlines, stay calm, cool and as the Johnny walker ad says Keep walking and keep investing for a healthy and wealthy future !

Data source : Valuresearchonline