NEW DELHI: Indian equities continue to demonstrate strong long-term wealth creation potential, delivering 11–12 per cent CAGR over the last 20 years, with the Nifty 50 multiplying investor wealth by over 8 times, a report showed on Tuesday.
Over a longer horizon, equities have grown nearly 80 times since 1990, translating to 13 per cent annualised returns, according to FundsIndia’s ‘Wealth Conversations Report.’
“Overall, time in the market is more important than timing the market, as every major market correction in history has eventually been followed by recovery and long-term wealth creation, ” it added.
The report highlights that market volatility is a natural part of equity investing.
Historically, markets have experienced 10–20 per cent intra-year declines almost every year, yet nearly 80 per cent of years have ended with positive returns, demonstrating that volatility is often temporary.