Capitalmind
Capitalmind
Actionable insights on equities, fixed-income, macros and personal finance Start 14-Days Free Trial
Actionable investing insights Get Free Trial
General

Best Wishes For 2017, As Another Year of a Forgettable Nifty Passes By

Nifty-Monthly.png

Happy New Year folks! Starting the year we look at a chart of the monthly returns of the Nifty – which ended the year up 3% with a last week rally.Best Wishes For 2017, As Another Year of a Forgettable Nifty Passes By
The month of December was down just 0.5%.
The last two years have been lousy. The index is down over 10% from its highs in March 2015.
Here’s what the Sensex did – it fell by 0.1% in December for an annual return of about 2%.Best Wishes For 2017, As Another Year of a Forgettable Nifty Passes By

The 10 year SIP return falls to 7.3%

If you invested a constant amount every month for 10 years, your overall return would be just 7.3% in the Nifty. Add about 2% for dividends and you get a number that’s potentially beatable by fixed income products!
Best Wishes For 2017, As Another Year of a Forgettable Nifty Passes By
For this graph to look decent next year, the index needs to rise about 20%. It doesn’t look possible, with shattered earnings, a lousy macroeconomic situation and falling growth.
But on the positive side, there isn’t much else you can invest in now either. Hopefully the next 10 years are better!