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Synopsis:Highlight: Over a 15-year period, US equities outperformed all other asset classes, while Indian equities took the lead over a 20-year horizon, showcasing their long-term growth potential. Gold, real estate, and debt funds yielded moderate returns, emphasizing the importance of considering investment horizons and economic cycles when planning for financial goals.
When it comes to investing, understanding the performance of different asset classes over extended periods is crucial for making informed decisions. A comparative analysis of the returns from Indian equities, US markets, gold, real estate, and debt funds over 15 and 20 years offers valuable insights into where your investments could have yielded the highest returns.
15-Year Performance:
For the past 15 years, US equities, represented by the S&P 500, have outperformed other asset classes with an impressive annualized return of 18.7%. Indian equities followed, delivering a strong return of 13.2%. In contrast, gold, often considered a safe haven, provided a moderate return of 10.6%, while real estate and debt funds lagged behind, with returns of 6.4% and 7.5%, respectively.
20-Year Performance:
When extending the time horizon to 20 years, Indian equities take the lead, showcasing their long-term growth potential with an annualized return of 16.1%. US equities remain strong with a 13.9% return. Gold also performed well over this period, yielding 12.8%, while real estate and debt funds provided returns of 8.4% and 7.4%, respectively.
The variance in performance over these two time frames highlights the importance of considering your investment horizon. While US equities may shine in shorter periods, Indian equities demonstrate significant potential over the long term, particularly when looking at a 20-year horizon. Investors should balance their portfolios by considering both the historical performance and future prospects of these asset classes.
