The report highlights that equities remain the best-performing asset class over long horizons, with Indian equities delivering ~16% CAGR since 2003 and U.S. equities performing even stronger. Actively managed funds have outperformed index funds over long periods, compounding ~46x since 2003.
Midcaps and smallcaps have significantly outperformed large-caps since 2019 but also show deeper drawdowns during corrections. The data reinforces that staying invested improves outcomes the probability of positive returns reaches 100% over 10–15 year periods.
The report also shows that market corrections are frequent but recoveries are consistently strong, and missing even a handful of the best days dramatically reduces returns, making market timing ineffective.
Gold remains a reliable long-term inflation hedge, driven partly by rupee depreciation. U.S. markets (S&P 500 and Nasdaq 100) continue to outperform emerging markets, with China being a drag on EM performance.
Currency analysis indicates that INR depreciation aligns with interest rate differentials (UIP theory). The report also emphasizes asset allocation benefits, showing how combining negatively correlated assets (equity, debt, gold) reduces volatility and improves portfolio efficiency.
SIP analysis reveals no meaningful difference across SIP dates, and monthly SIPs remain optimal.
The macro section highlights India’s resilience GST collections, power consumption, PMIs, and inflation trends point to a steady economic backdrop in late 2025.
Disclaimer: Growthfiniti Wealth Pvt Ltd is a SEBI-registered Portfolio Manager (INP000009418). The information provided is for educational purposes only and not investment advice. Market investments are subject to risk.