There is always a reason not to buy Equities. Despite several intermittent crises, Indian Equities have gone up over the long run mirroring earnings growth
Sensex has generated 13.6% CAGR i.e.135 times in 38+ years, Sensex (1986 to 2024 YTD)
Every crisis in the past has been followed by a recovery and further upside. Upsides have been much higher than the Declines
Even if you invested right before a market crash, over long time frames the returns have still turned out to be decent, even Bull Markets have several intermittent decline
Equity Returns are non-linear – Missing few best days in the market significantly reduces returns (Seven of the best 10 days occurred within two weeks of the worst 10 day) . If you missed the 10 best days in the last 19+ years, your portfolio value was lower by 50%.
All Time Highs are a natural part of any growing asset class and not something to be feared
All Time Highs automatically don’t imply a market fall. The average 1Y returns when invested in Nifty 50 TRI during an all-time high, is 14%
Never interrupt compounding – Profit booking at market highs underperforms over long-term.
Robins Joseph, SEBI Regd Investment Adviser , Certified Financial Planner. Founder of MyGuide2Wealth (www.myguide2wealth.com) based in Noida specializing in wealth, investment, retirement services with clear aim of Spreading financial literacy and advocating on India’s strong equity story
