longer investment horizon curtails chances of negative return, if someone has invested in NIFTY 50 for 10 more years he would not have received a negative return.
For a ten-year investment period, the average return is 11.42% (CAGR).
A 15-year investment period provides the best average return of 12.29% (CAGR).
The last 20 years of the Indian stock market have shown multiple winners and loser sectors.
FMCG is a clear winning sector it has a compounded annual growth rate (CAGR) of close to 20% which could have resulted in 1 lakh rupees multiplying to 38 lakhs.
The second winner is the auto sector with a CAGR of 19.83% and the third winner is the financial services sector with a CAGR of 19.02%
The obvious losers are the PSU banks and the pharma industry with a CAGR of 11.76% and 14.32% respectively.