I know u must have heard 1000 times the
importance of equity investment as a vehicle for wealth. But do you know why so
many people are inclined to one thought??Or have a same view point??
Let’s clear our heads... Finally i have
decided to support my claim with Data.
First Things first, it took me one whole
month to get various data from various sources… but as they say: where there’s
a will, there’s a way.
As i discussed earlier options of investments
are Stocks, Commodities, and Real Estate, F/D’s and many more. If we follow the
newspapers/personal financial books it is often quoted that equity returns more
than 12% while Fixed Deposits give less than 10%. Hence equities
should definitely be the part of one’s portfolio for long term in
fact the formula suggested is 100 – age. But parents say that Real Estate
give the best returns. But last few years Gold has given great returns! I
have tried to find Returns of various Asset Classes in India over a period
of time. But I have not taken taxation into picture.
Returns
of the Asset Classes
Returns of asset classes like
Equities, Gold, Bank Fixed Deposit, Property are gathered from various sources:
As you can see Investment in equities have
clearly outpaced returns generated from other classes of investment. Well
that’s not the end… the next chart will surely clear your head.
Returns across various periods
Returns of equity, gold, fixed deposit from Jan 1983 to Dec 2012 in 4 year time period
In the end , i leave it upon you to decide which asset class suits you best in long run...;0
No comments:
Post a Comment