- Wealth PMS
When you adjust for inflation gains look terribly low. Inflation is how much your money’s purchasing power reduces. So you have to adjust for that, so let’s assume we invested X rupees in the stock market, got dividends and reinvested them, what would that money be today (in the same purchasing power that I originally invested them as)?
We are probably just 300 points from an all time high (5%) and but the difference if you consider dividends and inflation is much lower.
This is only with WPI inflation. With CPI, which is at 9% but doesn’t have such a big history, things are much worse!
Note: Reader Nikhil asks me to put in the Nifty TRI (Total Returns Index) for a comparison. Your wish is my command!