New Delhi, 15 September (IANS). Indian stocks under the Nifty 50 basket achieved 14 percent CAGR in the last 20 years, increasing the assets of investors by 13 times. This information was given in a report released on Monday.
Meanwhile, Gold recorded a CAGR of 14.7 percent better than the shares, which increased 16 times in the same period.
According to FundsIndia’s ‘September Wealth Conversion Report’, in comparison, Real Estate and Date Market have given relatively low returns from CAGR of 7.7 percent and 7.5 percent respectively in the last two decades.
In the long term, domestic stock markets performed even better, gaining 13.6 percent CAGR in 35 years and increased the property by 88 times.
Globally, the US Equity Benchmark S&P 500 registered a CAGR of 14.7 percent, which has increased the assets of investors by 15.6 times over the last 20 years.
Mid-cap and small-cap stocks in India have emerged as the largest wealth creators.
Nifty Smallcap 250 recorded a CAGR of 14.2 percent, which has increased 14 times in two decades, while Nifty Midcap 150 has increased the rate of 16.2 percent on an annual basis, increasing the assets by 20 times.
Comparatively, large-cap stocks shown by Nifty 100 recorded a CAGR of 13.9 percent and increased by 13.6 times in the same period.
The report also emphasized the importance of long -term investment.
The Nifty was 43 percent of the possibility of negative return for intraday trade in 50 shares, 39 percent for one month holding, 31 percent for three months holding and one year for one year holding.
However, in the long term this risk was significantly reduced, which saw negative returns for three years to only 6 percent, 0.1 percent for five years and zero for the holding period of seven to ten years.
According to the report, in 73 percent of cases, Indian equity (Nifty 50) has doubled in 6-7 years and in 80 percent of cases, Indian equity has three times in 10–11 years. In addition, in 76 percent of cases, Indian equity has increased four times in 12–13 years.
-IANS
SKT/
