Planning to invest in Indian equities? Here are key data points on historical returns, m-cap and more

Indian equities have been the best performing market on a 3-year and 5-year basis. It has a 3-year CAGR of 11.5 percent (annualised return in US dollar) and a 5-year CAGR of 11.4 percent, the highest among G-20 nations. On a 3-year basis, apart from India, Russia, Indonesia and China have CAGRs on over 10 percent each. Meanwhile, on a 5-year basis, Indonesia, Russia and Brazil were the other top performers. However, on a 1-year basis, China was the top performer followed by Russia and India.

Longer Term: Indian equities are the best among G-20 in the longer term also. The market has a 15-year CAGR of 9.6 percent and a 20-year CAGR of 10.7 percent, highest among peers. However, on a 10-year basis, it is on the second place after Indonesia with a CAGR of 9.2 percent.

Market Capitalisation: The Indian equity market is the third largest globally and one of the fastest growing markets. China and Japan have higher m-cap than India. China's m-cap stands at $12.5 trillion while that of Japan is $5.6 trillion. Meanwhile, India stands at $3.3 trillion currently. India has been one of the fastest growing after China, Saudi Arabia and Japan.

FIIs’ Indian equity portfolio (in dollar) increased 1.8x since 2014 to $562 billion currently from $312 billion. Meanwhile, its portfolio value of FDI in listed Indian equities jumped 4.1x since 2014 to $258 billion from $63 billion. Also, Indian MFs rose by 5.8x during the same period to $276 billion from $48 billion.

Indian MFs neutralized the impact of FII selloff in 2022. The money to MFs is coming mainly through SIPs. In 2022, FIIs sold $15.4 billion while MFs bought equities worth $23.6 billion.

India is likely to continue performing better on the back of robust outlook for economy, infra, as well as technology.

India is on course to becoming the third largest economy in the next 6-7 years.