I’ve recently shared via an email, the Indian Equity Market’s performance, in ‘absolute returns’, since Jan 2011. Now, let
me share similar fact findings under a Monthly SIP (systematic investment plan) format of investing –
Tenor – Dec 2010 until 1 Aug 2016 (5 years & 9 months). Investing on the 1st of every month. 2 Indices chosen – BSE Sensex & the wider BSE 500. CAGR – Compounded Annual Growth Rate, is calculated – BSE Sensex – 9.29% & BSE 500 – 11.89%
Deductions:
Systematic route prevails over One Time investments (in the medium & long run)
The difference between a pure large cap index & a more diversified index is 2.7% p.a. (Over this period)
Tactical Allocations work, when the ‘Timing’ is appropriate (most investors don’t get this timing).
Strategic Allocations work, irrespective of the ‘Timing’.
All the ‘Gyan Sessions’ on which category of stocks / mutual funds to invest ?
I’ve not compared the ‘Additional Returns’ delivered by mutual funds, as an investment vehicle. The value add is a ‘writing on the wall’ ?….but investor beware, there are more than 3000 schemes to choose from ?