Equity is a wealth creator not destroyer

I always hear from people that equity is a wealth destroyer,not creator at all,but in real sense Equity has been always a wealth creator in the past and beaten all asset classes like Real estate, Gold ,Silver Bank FD. Sensex has grown 360 times in last 39 years.As in 1979 Sensex was at only 100 and now it is quoting 35000-36000.No magic has been done in equities, it was just power of compounding growth in Sensex of appx 16%. This has been done due to Growth in Our Indian GDP, which has been growing@ 7% since last two decades.That is why India is the bright spot in all our the world. But to create wealth in Equities, we should have long term horizon.

 we are at now 2.5 trillion dollar economy and it is expected to double in next five years by many research reports.So if our GDP is going to be doubled,why Equities would have not been grown.As equities are always replica to Economic growth in long term.Equity has always followed the Nominal GDP- GDP@ 7%+ Inflation @ 6% = 13%.After creating Alpha Equities has given 16% on CAGR basis. In  a layman language, 1 lakh invested in 1979 has become more than 35000000 now. So actually it is wealth creator but it wants time to hold, it tests our patience in every bear cycle.

By following proper financial planning, discipline we can create our big wealth in equities. As to make real return, we have to invest in equities, there is no other option. And we should always think Equity as asset class, which i have already told in my video.You can also see in y video.So Equity was,is and will be wealth creator not destroyer.