Historical BSE Sensex returns - updated 2014

We have already seen the historical returns of the S&P BSE Sensex, which has given an average return of about 20%  per year, despite volatility and price fluctuations of about -20% to +60%. The following table shows S&P BSE Sensex historical data - start  & close values and the yearly returns of the sensex from 2000 to 2013.

As far as the other major  indices are concerned, CnxIT gained about 58%, whereas the BankNifty lost about 9% and the Cnx Midcap index lost about 5%. Despite the sensex gaining 9% for the year there were many stocks which have lost 95% and some stocks gaining about 10-200%, most of them from the Information and Technology sector.

During the year the index hit an all-time high of  24483 and despite markets hitting all time highs only a few stocks made all-time highs or the highs which were made in 2008 bull run,  while most of them are still languishing well below their historical highs. The message for retail investors is clear - index investing is better than individual stocks.  Individual or Retail investors can achieve above-average returns by investing in index through Exchange Traded Funds (ETFs) like Nifty Bees or Top mutual funds, which have given consistent returns over longer term.

Be a wise investor !