Endpoint sensitivity on “historic” knowledge – Bogleheads.org
This CAGR is for 70-80 years but the CAGR varies significantly relying on what begin yr and finish yr is chosen. I actually seen this with US Equities having unhealthy efficiency compared to Indian Equities in case you select to start out from the yr 2000 to Current Day (Presumably as a consequence of that yr being the height of Dot-com Bubble) however in case you begin at 1995 to Current Day as an alternative the efficiency of US Equities is significantly better than Indian Equities. Right here is the excel sheet containing the returns for the 2. (Obtain (xlsx file).
This I believe is an effective warning to not assume Equities will return 15% long run as a result of that return occurred on a particular begin and finish date (which included Harshad Metha Rip-off which is almost certainly not going to re-occur as a consequence of how rather more regulated Indian Markets are presently compared to the 90s) and in case you modify that begin and finish date the returns will likely be vastly completely different.