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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%

2 comments:

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  2. 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!
    regards:
    Stock Tips

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