Why Equities

Equities are the best Asset Class

Equities as an asset class, offer the best returns in the long term.
Fig: Compounded Annual Growth Rate for the period of 8 years till October-2010

Equities Out-performance

Adjusted for Inflation, the out-performance of Equities is even more obvious.
Fig: Compounded Annual Growth Rate for the period of 8 years till October-2010, adjusted for Annual Inflation of 5.29%

Equities are Wealth-Creators

So, over a 10-Year period, investment in equities can expand wealth significantly – almost 9-10 times – and faster than other asset classes

Equity Volatility

Though returns on equities appear volatile in the short-term (+46% to -16% for 1-year) this volatility disappears as the holding period increases( +24% to +2% for a 6-year holding period). With active fund management, this performance can be improved even further.

Steady Growth in Equities

The 5-year CAGR for the Nifty Index rarely goes below zero – even in a bad year like 2008.