How much return should an investor expect from equity investments?
Equity returns depend on many factors that include domestic and global economic factors, inflation, interest rate, political environment, etc. Historical performance shows the return of broad equity indices in the range of 12-15% p.a. However, these returns can vary from stock to stock. Stock portfolio returns also depend upon the investment time horizon and portfolio diversification. Longer the duration, the higher the chances of positive and better returns. Diversification can help to reduce the risk of the portfolio.
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