Global Data Overview
A useful set of data shows returns from many countries like the UK, Australia, France, Canada, Philippines, Mexico, Indonesia, Japan, Brazil, USA, and India. These returns are measured in their local currencies. When we compare all major countries together, we get a clear idea of how different markets have performed over time.
Understanding Real Returns
Real return means the return after removing inflation. This is very important because inflation reduces actual gains. In many countries like Malaysia, Philippines, and China, real returns are negative. This means investors are losing value after inflation. India, however, shows a positive real return of around 4%, which is better than many countries.
SIP Performance in India
Systematic Investment Plan (SIP) returns in India are also strong. The average SIP return is around 12%, which is in double digits. After adjusting for inflation, the real SIP return is close to 5%. Some countries like Taiwan, Korea, and Japan may show higher numbers, but India still stands strong among major markets.
Worst 5-Year Returns Comparison
Looking at the worst 5-year SIP returns gives a very interesting picture. In some countries, losses are very large. For example, Taiwan has seen high volatility, while the Philippines and Japan have seen returns as low as -25% and -24%. These are very big losses over five years. In India, the worst case is around -11%, which is much lower compared to others.
Chances of Good Returns
Another important point is how often investors get more than 8% return over any 5-year period. In India, this happened about 74% of the time. This is very high. In comparison, the UK achieved this only about 12% of the time. The USA is close to 50%, which means it is almost a coin toss. India clearly performs better in this case.
Final Thought for Investors
No one knows what will happen in the next five years. But if we look at the last 30 years, India shows strong and stable performance. The data supports long-term investing and staying disciplined. For investors, this makes India look like a good market to continue investing with patience.
