Equities fail to shine in 10-yr return chart

While gold has returned 12% annual gain in past 10 years, those of the Nifty do not exceed 9%

Hamsini Karthik  |  Mumbai 

There’s euphoria on how the stock market is now trading at an all-time high, tempting some to name it a bull rally and gathering momentum. However, closer reading of the numbers suggests the markets haven’t delivered really exciting returns in the past decade as compared to other asset classes. From the start of 2007 (then reckoned as a strong bull market year) till date, even as the CNX Nifty (benchmark index on the National Stock Exchange) rose from around 4,000 to 8,924 points till date, the annualised return translates to nine per cent. In comparison, gold and ...

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Equities fail to shine in 10-yr return chart

While gold has returned 12% annual gain in past 10 years, those of the Nifty do not exceed 9%

There's euphoria on how the stock market is now trading at an all-time high, tempting some to name it a bull rally and gathering momentum. However, closer reading of the numbers suggests the markets haven't delivered really exciting returns in the past decade as compared to other asset classes. From the start of 2007 (then reckoned as a strong bull market year) till date, even as the CNX Nifty (benchmark index on the National Stock Exchange) rose from around 4,000 to 8,924 points till date, the annualised return translates to nine per cent. In comparison, gold and risk-free bonds have returned a 12 per cent CAGR (compounded annual growth rate) and 7.6 per cent, respectively. As equities are a riskier asset class, their returns ought to be higher than risk-free bonds by a good margin. It is possible that had it not been for the Lehman Brothers crisis of late 2008, the brake might not have been applied on Indian equities. The Nifty rose from around 4,000 points at the start of 2007 to .. There’s euphoria on how the stock market is now trading at an all-time high, tempting some to name it a bull rally and gathering momentum. However, closer reading of the numbers suggests the markets haven’t delivered really exciting returns in the past decade as compared to other asset classes. From the start of 2007 (then reckoned as a strong bull market year) till date, even as the CNX Nifty (benchmark index on the National Stock Exchange) rose from around 4,000 to 8,924 points till date, the annualised return translates to nine per cent. In comparison, gold and ... image
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