Investment Returns Over Time

[DRD]

I have been looking at my ISA purchases and I think it makes an interesting case study. With all the lies and fake news around nowadays (particularly regarding investments), I trust what I can see with my own eyes.

Bought between 2008 and 2019. All are basic trackers with very low annual fees. There was no strategy, save diversification. These were totally random purchases, few grand here and there when I had some, various dates, some years I invested zero. Some funds were one-off purchases - others I bought a few times

• UK All Share Index
• UK FTSE 100 Index
• European Index
• US Index
• Japan Index
• Pharma Index
• Asia Pacific Index

This is a pretty diversified bunch. All of them delivered annual growth of 6% to 9% APART from the USA which delivered 15% to 16%. That is a helluva difference when you compound it.

Buying a few MM or MB or TAF over this period would have done a lot better, but there you go.

 

[Asiapinball]

USA returns heavily impacted by returns on tech stocks that now dominate the market plus over the period massive strengthening of the US dollar which adds to your returns in £.

Unbelievable that in 2008 exchange rate was 2 dollars to the £ so you would have got a 3% compound return if you had just changed some £ notes up to dollars and stashed them under the matress for 17 years and changed them back now.