The equity market is very forgiving, said Prashant Jain at a Morningstar conference on Wednesday. He gave the example of a person who invested money in the Sensex in 1992, at the height of the Harshad Mehta scam. The Sensex has multiplied 15 times over the next 30 years, allowing the ‘foolish’ investor a 9.5% CAGR on his portfolio. Similar returns of 11.4% and 7.5%, respectively, follow for anyone who invested at the peak of the dot-com boom in February 2000 or just before the 2008 global financial crisis.
