If you’re wondering what is the returns Sensex offered in Last 20 Years (from 2000 to 2020) then you’ve come at the right place. It still feels like the year 2000 was just a few years ago. I still remember the lyrics of Aamir Khan’s song Dekho 2000 Zamana aa gaya however 20 years have passed since the start of this new century. Had you invested something in the equity mutual fund at the beginning of 2000 then you can see the result you would have got in the below chart.
2020 has arrived and soon 2030 will, then 2040. It might sound funny to actually think ahead 10 or years 20 like this. However, just imagine if you had invested a small portion of your savings in 2000. That would be with a huge amount by now. Nobody can go back in time but you can surely fix things now and start the journey from today.
One of my friend told me he bought a house in early 2000 and the price has doubled now, it was a good investment, really? If we look at the result provided by any equity index fund that replicates Sensex, you’ll see they offered approx 12%-14% CAGR which doubles the investment value every 5 years with the power of compounding. There have been recessions and market crashes.
Below is the chart that compares the returns between the actual return given by Sensex since 2000 and a bank fixed deposit (FD) at 7.5%.
The red line shows a stable return as provided by a bank FD. If Rs.5000 was invested as one time in bank FD in 2000 then it’d have given us a return of Rs.21,239 by 2020. On the other hand, Sensex jumped from 5000 to more than 41000 in the same period of 20 years.
Sensex Historical Data
Below is the historical Data of Sensex from start of 2000 to 2020.
Even after all the ups and downs. There have been recessions and market crashes. Sensex still stands strong and experts say it should reach 1 lakh before 2025.
You might be a skillful day trader in stock market or a person who doesn’t know anything about it. Or may be salaried person with a steady income or a businessman with ups and down. If you make a habit of investing a specific amount through systematic investment policy (SIP) in Mutual fund, you can create wealth over long period of time.
You don’t need some special skills to invest in the growth of our economy. You don’t need to have a PhD in finance or economics. All you need is a little patience and consistency. Investing a small portion of your salary and automating that task (by setting SIP) will do all the work.
A small portion of your salary (like 5% or 10%) that you will save and invest today will hardly create any impact in your lifestyle. Many people would hardly notice that change. That’s a principle of Paying yourself first and then to others. However, when you stay invested consistently and look back, you’ll see that was one of the best decisions you had taken.
You might need that money to sponsor your child’s further studies, travel abroad on a trip or even buy a bigger house. The step that you will take today will create that impact. Then probably in 2040, you’ll look back at another post like this and see the Sensex returns of last 20 years with a smile. With an inner joy that you did your best to create the best future for yourself.
It’s never too late to start something valuable