Who wrote this article?

Deepak Shenoy, Capitalmind's research team.

Sensex Rolling 5Y Returns at 2.21%

25 May 2012Deepak Shenoy1 min read

Quick Facts

What is "Sensex Rolling 5Y Returns at 2.21%" about?
What category is this article in?: Charts And Analysis
Who wrote this article?: Deepak Shenoy, Capitalmind's research team.
When was this article published?: Published 25 May 2012.
How long does this article take to read?: 1 min read
What topics does this article cover?: Sensex

The rolling returns for the Sensex (suitably annualized) are in the graph below:

Read this as: At “May 12” the 10 year return indicates the return I would have got had I invested 10 years ago in the Sensex, i.e. in May 2002, annualized.

Note carefully that none of the lines are close to their lows - that means returns are likely to go lower. But that needn’t mean the index itself goes down from today’s value; in 2013 Jan, the five-year-ago value will be over 20,000 for the Sensex, so even if we stay where we are, rolling returns will look negative.

Sure, you could say why not do a 5 year investment plan (SIP) instead, investing every month. What about those returns then?

Sadly, our returns have been lower than a fixed deposit, other than the 10 year SIP return. But that, I think, is because the Great Indian Stock Market Story Was Only For Five Years.