Chances of Loss diminishes as one

stay invested BSE Annual 3-year 5-year 10-year 15-year

Date SENSEX Growth CAGR CAGR CAGR CAGR
Dec-83 253
Dec-84 272 7.5%
Dec-85 527 94.0%
Dec-86 524 -0.5% 27.5%
Dec-87 442 -15.7% 17.6%
Dec-88 666 50.7% 8.1% 21.4%
Dec-89 779 16.9% 14.1% 23.4%
Dec-90 1,048 34.6% 33.3% 14.7%
Dec-91 1,909 82.1% 42.0% 29.5%
Dec-92 2,615 37.0% 49.8% 42.7%
Dec-93 3,346 27.9% 47.2% 38.1% 29.5%
Dec-94 3,927 17.4% 27.2% 38.2% 30.6%
Dec-95 3,110 -20.8% 5.9% 24.3% 19.4%
Dec-96 3,085 -0.8% -2.7% 10.1% 19.4%
Dec-97 3,659 18.6% -2.3% 6.9% 23.5%
Dec-98 3,055 -16.5% -0.6% -1.8% 16.5% 18.1%
Dec-99 5,006 63.8% 17.5% 5.0% 20.5% 21.4%
Dec-00 3,972 -20.6% 2.8% 5.0% 14.2% 14.4%
Dec-01 3,262 -17.9% 2.2% 1.1% 5.5% 13.0%
Dec-02 3,377 3.5% -12.3% -1.6% 2.6% 14.5%
Dec-03 5,839 72.9% 13.7% 13.8% 5.7% 15.6%
Dec-04 6,602 13.1% 26.5% 5.7% 5.3% 15.3%
Dec-05 9,397 42.3% 40.7% 18.8% 11.7% 15.7%
Dec-06 13,786 46.7% 33.2% 33.4% 16.1% 14.1%
Dec-07 20,286 47.1% 45.4% 43.1% 18.7% 14.6%
Incidence of Losses 7/24 4/22 2/20 0/15 0/10
NO. YEAR END SENSEX ROLLING 1 ROLLING 3 ROLLING 5 ROLLING ROLLING 15
YEAR YEAR YEAR 10 YEAR YEAR CAGR
GROWTH CAGR CAGR CAGR

0 31-Mar-79 100
1 31-Mar-80 129 29%
2 31-Mar-81 173 35%
3 31-Mar-82 218 26% 30%
4 31-Mar-83 212 -3% 18%
5 31-Mar-84 245 16% 12% 20%
6 31-Mar-85 354 44% 18% 22%
7 31-Mar-86 574 62% 39% 27%
8 31-Mar-87 510 -11% 28% 19%
9 31-Mar-88 398 -22% 4% 13%
10 31-Mar-89 714 79% 8% 24% 22%
11 31-Mar-90 781 9% 15% 17% 20%
12 31-Mar-91 1,168 50% 43% 15% 21%
13 31-Mar-92 4,285 267% 82% 53% 35%
14 31-Mar-93 2,281 -47% 43% 42% 27%
15 31-Mar-94 3,779 66% 48% 40% 31% 27%
16 31-Mar-95 3,261 -14% -9% 33% 25% 24%
17 31-Mar-96 3,367 3% 14% 24% 19% 22%
18 31-Mar-97 3,361 0% -4% -5% 21% 20%
19 31-Mar-98 3,893 16% 6% 11% 26% 21%
20 31-Mar-99 3,740 -4% 4% 0% 18% 20%
21 31-Mar-00 5,001 34% 14% 9% 20% 19%
22 30-Mar-01 3,604 -28% -3% 1% 12% 13%
23 31-Mar-02 3,469 -4% -2% 1% -2% 14%
24 31-Mar-03 3,049 -12% -15% -5% 3% 15%
25 30-Mar-04 5,650 85% 16% 9% 4% 15%
 A CLASSIC STUDY
• According to a study by Outlook Money
dated 31st Mar ’07
 Lowest expected return increases as the

holding period increases

 Volatility reduces as holding period

increases
 RETURNS CHART
Period Lowest Highest Volatility
Return Return

1 yr -54% 268% 322%

2 yrs -26% 143% 169%

5 yrs -8% 56% 64% Period Lowest Highest Volatility
Return Return
12 yrs 2% 34% 32%

15 yrs 11% 28%% 17%

20 yrs 13% 21% 8%

25 yrs 15% 18% 3%