Asset Price Expansion Since 1979-80

Asset Price Expansion Since 1979-80

Why 1979-80?

That is the year from which Sensex came into existence with base as 100.

1) Assume you’ve invested Rs.1 lakh each in FD, gold, silver and Sensex 37 years ago. As of 31’st March 2016 the value is as follows-

FD: Rs.19.75 lakhs,
Gold: Rs.36.53 lakhs,
Silver: Rs.24.46 lakhs                        Sensex: Rs.2.53 crores.

2) Unlike other assets mentioned above, Sensex has dividend yield in addition to capital growth. Assuming a dividend yield (duly reinvested) of 2% on an average, the Sensex return works out to Rs.4.76 crores.

3) To put it another way, during last 37 years:

FDs have multiplied wealth by 20 times. Gold by 37 times.                                   Silver by 24 times                           Sensexby 253 times

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