Who wrote this article?

Deepak Shenoy, Capitalmind's research team.

Rolling 5 year Return at 2.45%: 2011 in Charts

2 Jan 2012Deepak Shenoy1 min read

Quick Facts

What is "Rolling 5 year Return at 2.45%: 2011 in Charts" about?
What category is this article in?: General
Who wrote this article?: Deepak Shenoy, Capitalmind's research team.
When was this article published?: Published 2 January 2012.
How long does this article take to read?: 1 min read
What topics does this article cover?: Sensex

Remember in 2007 how they would tell you that the markets would return great money over five years? Well, you could have gotten better returns in a 3.5% savings account, it turns out.

(All returns are annualized)

The 1 year return is -25%.

The 3 year return is 16.5% after the huge dip in 2008; if we don’t recover by May, when the index went back up to the 12000 levels on the Sensex, we will see even the three year return go to single-digits.

The 10 year return is a good 16.7%, which is due to the crash in 2001 (lower base). But that dip continued till July 2003, so unless the markets dip substantially from here, I expect the 10 year rolling return to stay above 10% (per year).

But what’s interesting is that in the last five years, the Indian GDP has nearly doubled to 80 lakh crore. The Indian markets, though, have gone nowhere.