Sensex Five Year Returns Below 5%, Mutual Funds Did Slightly Better, But Barely Beat Inflation.

What if you had invested in the Sensex, every month, with the same amount, over the last five years? (Called a Systematic Investment Plan or SIP)

Answer: Less than 5% Per Year.

(Add another 2% for dividends, and remove about 1% for costs – either as ETF fees or otherwise – and you still get just 6% to 7% on the Sensex for five years)

This is where you friendly advisor will tell you – Look, think 10 years, because five years isn’t long term.

If 10 year returns suck, the long term will become 20 years. Or till you retire. Or till you die. It’s a very good argument.

Active Funds Have Done Better: Mutual Funds Scrape Through

Read more at http://capitalmind.in/2016/01/sensex-five-year-returns-below-5-mutual-funds-did-slightly-better-but-barely-beat-inflation-time-for-a-change