Home / Money / Personal Finance /  Even investment in 1992 peak is up 15 times: Prashant Jain
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The equity market is very forgiving, said Prashant Jain at a Morningstar conference on Wednesday. He gave the example of a person who invested money in the Sensex in 1992, at the height of the Harshad Mehta scam. The Sensex has multiplied 15 times over the next 30 years, allowing the ‘foolish’ investor a 9.5% CAGR on his portfolio. Similar returns of 11.4% and 7.5%, respectively, follow for anyone who invested at the peak of the dot-com boom in February 2000 or just before the 2008 global financial crisis.

That is, even if you invested at a market peak—the worst possible time to do so— and stayed invested in the market for a long enough period, you ultimately made money. “A typical market cycle is 7-10 years. So, you should have a timeframe of at least seven years if not 10 for equity investing," says Anup Bansal, chief business officer, Scripbox. He adds, “If you stay invested this long, you can get an inflation-beating return."


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According to Munish Randev, founder & CEO, Cervin Family Office & Advisors, the timing of the investment does have an impact on short and medium-term returns of your equity portfolio but as you start looking at horizons of 10, 15 & 20 years, the divergence between the worst and the best rolling returns narrows considerably.

The conclusion that investors can probably then draw is to “focus on giving enough time to their investments to grow rather than on timing the market," as summed up by Bansal. However, he points out that while this may hold true for the broader market, if you invest in the stock of a company that goes bankrupt, or an MF scheme that has taken the wrong bets, then no amount of time will help you.

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