Index Investing is latest trend since Warren Buffet spoke about it. Here is why people suggest to invest in Index Funds, in the last 20 Years - NASDAQ 100 is up +468%, DOW JONES is up +191%, GERMAN DAX is up +163%, S&P500 is up +158% and most surprising is India Sensex return. It is up whopping +928%.
So should you invest in Index Fund ?
Let see below scenario discussed at 100X Returns through Equities & Wealth Creation through PMS by Mr. Raamdeo Agrawal. A person from audience asked him, between 1992 - 2003 market returns were flat or negative. Its like almost 10 year which is a very long period.
Just imagine, if your had invested in index funds from 1992 and waited till 2003 with negative return will you continue for next 10 year ? Must reply in comments below.
What lies in Future ?
Like all investment product disclaimers : Past performance is no guarantee of future results.
In the above video Raamdeo Agrawal response was most surprising. He said "We made most of our money during this period".
As discussed in my last blog, analysis relationship between Risk and Return is very important. Also, active and passive investments have their own benefit and risk. So, it is very important to plan your financial investment with combination of both the product. Never be an Extremist.
Share your views in comments below and let me know if your need more explanation on any of the above points. Also, if you have any questions in mind do ask them in comments.
Related Post:
Index Fund Investing way for Future ?
Reviewed by Abhishek Mallya
on
March 16, 2019
Rating:
Reviewed by Abhishek Mallya
on
March 16, 2019
Rating:
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