Wednesday, December 2, 2020

Historical Return of Different Asset Classes

 Do you know what is the historical return of different asset classes? The mentioned table below indicates the average return since 1980 i.e. per annum return (CAGR) generated in the last 40 years by various asset classes. Equity scores the highest followed by Real Estate.

                    


Imagine you had parked Rs. 1 lac with all asset classes in the year 1980. What value has been created by each asset class is also mentioned in the year 2020 considering their respective long-term per annum return. 


                

Needless to mention, a huge value generated by investing in Equity. No other asset class approaching even nearby. 

However, the million-dollar question is whether investors are able to cashout this phenomenon gains!

Not really, probably they don't understand how equity works in the longer term!


Disclaimer: Investment in the securities are subject to Market Risk. The past returns are not necessarily indicative of future returns.

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