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Saturday, March 17, 2007

Investing in BSE SENSEX

I have been reading a lot about investing in index funds. I posted an article from Fund Advice detailing the benefits of investing in an index. However, the studies done were targeted towards US markets.

I wanted to do something similar for BSE Sensex. I downloaded data from Yahoo Finance. The data was only up to 1 July 1997. I then started looking around and found data from BSE site going all the way back to 1991.

I will be explaining the methodology in later posts. Here, are some quick stats:
Average 1 year returns since 1991 = 19.99%
Average 3 year returns since 1991 = 11.74%
Average 5 year returns since 1991 = 7.65%
Average 7 year returns since 1991 = 6.67%
Average 9 year returns since 1991 = 6.72%
Average 11 year returns since 1991 = 7.20%
Average 13 year returns since 1991 = 10.14%
Average 15 year returns since 1991 = 14.36%

3 comments:

  1. Dear Visitors,

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    As we all know major stock market exchanges in India are

    BSE
    and NSE. Full form of BSE is Bombay stock exchange covering SENSEX
    where as

    NSE is
    National stock exchange covering Nifty and Nifty stocks.

    Now a days USA is facing recession which is affecting world market and
    recently we have witnessed major fall in Nifty and Sensex.

    In this fall many investors were trapped and loosed around 50% to 70%
    of their portfolio which is a major issue and need to be taken care
    of.

    Stock market is risky and will remain risk always still one can
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    There are few levels which we call support and resistance level which
    we suggest one should strictly follow for coming days if they want to
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    Right now Nifty is direction less

    Major suport-4660 below it next will be 4400.If breached then 4000.

    On upper side Res- 5025 closed above can take Nifty to 5150-5200 . 2-3
    closings above 5200 means 5400.

    We suggest strictly follow these level and enter in market as per these
    levels as these are very crucial levels technically.



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  3. Thanks so much for this! I haven't been this moved by a blog for a long time! You’ve got it, whatever that means in blogging. Anyway, You are definitely someone that has something to say that people need to hear. Keep up the good work. Keep on inspiring the people!
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