Equity is Not Risky in Long Term

Post on 05-Nov-2015

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Is it ok to invest in equity

Transcript of Equity is Not Risky in Long Term

  • Yrs YEAR END SENSEX level 1 year 3 years 5 years 7 years 10 years 15 years 20 years 25 years 30 Years0 31 Mar 79 100.001 31 Mar 80 128.57 28.57%2 31 Mar 81 173.44 34.90%3 31 Mar 82 217.71 25.52% 29.61%4 31 Mar 83 211.51 -2.85% 18.05%5 31 Mar 84 245.33 15.99% 12.25% 19.66%6 31 Mar 85 353.86 44.24% 17.58% 22.44%7 31 Mar 86 574.11 62.24% 39.49% 27.05% 28.36%8 31 Mar 87 510.36 -11.10% 27.66% 18.58% 21.77%9 31 Mar 88 398.37 -21.94% 4.03% 13.50% 12.61%10 31 Mar 89 713.60 79.13% 7.52% 23.81% 18.48% 21.72%11 31 Mar 90 781.05 9.45% 15.24% 17.16% 20.52% 19.77%12 31 Mar 91 1,167.97 49.54% 43.12% 15.26% 24.97% 21.01%13 31 Mar 92 4,285.00 266.88% 81.76% 53.04% 42.80% 34.71%14 31 Mar 93 2,280.52 -46.78% 42.93% 41.76% 21.78% 26.84%15 31 Mar 94 3,778.99 65.71% 47.90% 39.57% 33.11% 31.45% 27.40%16 31 Mar 95 3,260.96 -13.71% -8.70% 33.09% 35.03% 24.87% 24.05%17 31 Mar 96 3,366.61 3.24% 13.86% 23.58% 24.81% 19.35% 21.86%18 31 Mar 97 3,360.89 -0.17% -3.83% -4.74% 23.18% 20.74% 20.02%19 31 Mar 98 3,892.75 15.82% 6.08% 11.29% 18.77% 25.60% 21.43%20 31 Mar 99 3,739.96 -3.92% 3.57% -0.21% -1.92% 18.02% 19.92% 19.85%21 31 Mar 00 5,001.28 33.73% 14.17% 8.93% 11.87% 20.40% 19.31% 20.09%22 31 Mar 01 3,604.38 -27.93% -2.53% 1.37% -0.67% 11.93% 13.03% 16.38%23 31 Mar 02 3,469.35 -3.75% -2.47% 0.64% 0.89% -2.09% 13.63% 14.85%24 31 Mar 03 3,048.72 -12.12% -15.21% -4.77% -1.41% 2.95% 14.53% 14.27%25 31 Mar 04 5,590.60 83.38% 15.76% 8.37% 7.54% 3.99% 14.71% 16.92% 17.46%26 31 Mar 05 6,492.82 16.14% 23.23% 5.36% 7.58% 7.13% 15.16% 15.66% 16.99%27 31 Mar 06 11,279.96 73.73% 54.67% 25.63% 17.08% 12.85% 16.32% 16.06% 18.18%28 31 Mar 07 13,072.10 15.89% 32.73% 30.38% 14.71% 14.55% 7.72% 17.60% 17.80%29 31 Mar 08 15,644.44 19.68% 34.06% 38.69% 23.33% 14.92% 13.70% 20.14% 18.78%30 31 Mar 09 9,708.50 -37.94% -4.88% 11.67% 15.84% 10.01% 6.49% 13.94% 15.85% 16.48%31 31 Mar 10 17,527.77 80.54% 10.27% 21.97% 28.39% 13.36% 11.86% 16.83% 16.89% 17.80%32 31 Mar 11 19,445.22 10.94% 7.52% 11.51% 19.49% 18.36% 12.40% 15.10% 15.13% 17.04%33 31 Mar 12 17,404.20 -10.50% 21.48% 5.89% 15.13% 17.50% 11.59% 7.26% 15.16% 15.72%34 31 Mar 13 18,835.77 8.23% 2.43% 3.78% 7.60% 19.97% 11.08% 11.13% 16.68% 16.14%35 31 Mar 14 22,386.27 18.85% 4.81% 18.19% 7.99% 14.88% 12.67% 9.30% 14.78% 16.24%36 31 Mar 15 27,957.49 24.89% 17.12% 9.79% 8.65% 15.72% 12.16% 11.34% 15.39% 15.68%12/36 6/34 3/32 3/30 1/27 0/22 0/17 0/12 0/733.33% 17.65% 9.38% 10.00% 3.70% 0.00% 0.00% 0.00% 0.00%Probability of LossProbability of Loss (%)

    PERFORMANCE OF BSE SENSITIVITY INDEX - Equities not risky in long run

    As Time Increases --> # Volatility Decreases # Range Decreases # Probability of Loss Decreases