Sensex is currently on an all-time high of around 31,400. History of Sensex dates back to 1979 when it was commenced with an initial value of 100.
Thus, in preceding 38 years, Sensex has multiplied 314 times which works out to around 17% to 18% pa. CAGR (Compounded Annual Growth Rate). Thus, if stock market has given annualized return of 18% approx, all investors should have enjoyed same percentage of returns. However, this is not true. Many investors have actually incurred losses or made much less returns than the market returns of 18% pa and the chief cause of that is conduct of “wrong behaviour”.
Patience and discipline are two important virtues for making steady returns from Stock/Equity markets. However, investors largely get swayed by variety of emotions like greed, fear, impatience, nervousness or over excitement etc. Some of the examples of “wrong behaviour” are shared here.
This story is from the July 2017 edition of Investors India.
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This story is from the July 2017 edition of Investors India.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
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