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You can find the value of one rupee at different rate of return from the equity investing. You will be amazed to see how one rupee can be compounded annually so much at different rate of return from equity investing. There is no other asset class which can give more than 12% return in the long term. There is only one asset class, which can give the fabulous return greater than 12%, which is Equity.
| No.of years | 12% | 15% | 20% | 25% | 30% | 35% |
| 1 | 1.12 | 1.15 | 1.20 | 1.25 | 1.30 | 1.35 |
| 2 | 1.30 | 1.32 | 1.44 | 1.56 | 1.69 | 1.82 |
| 3 | 1.40 | 1.52 | 1.73 | 1.95 | 2.20 | 2.46 |
| 4 | 1.57 | 1.75 | 2.07 | 2.44 | 2.86 | 3.32 |
| 5 | 1.76 | 2.01 | 2.49 | 3.05 | 3.71 | 4.48 |
| 6 | 1.97 | 2.31 | 2.98 | 3.81 | 4.83 | 6.05 |
| 7 | 2.21 | 2.66 | 3.58 | 4.77 | 6.27 | 8.17 |
| 8 | 2.48 | 3.06 | 4.30 | 5.96 | 8.16 | 11.03 |
| 9 | 2.77 | 3.52 | 5.16 | 7.45 | 10.60 | 14.89 |
| 10 | 3.11 | 4.05 | 6.20 | 9.31 | 13.79 | 20.11 |
| 11 | 3.48 | 4.65 | 7.43 | 11.64 | 17.92 | 27.14 |
| 12 | 3.90 | 5.35 | 8.92 | 14.55 | 23.29 | 36.64 |
| 13 | 4.36 | 6.15 | 10.70 | 18.19 | 30.29 | 49.47 |
| 14 | 4.89 | 7.08 | 12.84 | 22.74 | 39.37 | 66.78 |
| 15 | 5.47 | 8.14 | 15.41 | 28.42 | 51.19 | 90.16 |
Indian stock market average return is 15% to 18% in 15 years.
Wealth can be created, not by timing the market, but by time in the market. Suppose you get annually 12% return from the equity, your money can be 5.47 times in 15 years. If you get annually 15%, your money can be 8.14 times in same period. If you get 20% annually, your money can be 15.41 times in 15 years. Is there any asset class which can beat equity in 10 to 15 years? Answer is NO. So equity investment is best investment for the long term. Stay invested at least for 7 to 10 years.
