What are we tracking? Top 5 indices to invest in
April 19, 2007Thanks for visiting! If you like what you're reading, you may want to subscribe to my RSS feed.
After I have talked you through many, many, many indices in various countries and on various continents, we need to draw some conclusions to actually make all of this worthwhile.
The main criteria for the list will simply be the medium-term growth rate (I consider 5 years to be medium-term since long-term investing is usually assumed to be > 10 years). The 5 year span should be sufficient to expose a growth trend, but there’s obviously no guarantee - especially if you’re looking at countries like India, which have become very fashionable in the last few years. If you remember the last “fashion trend” and what happened (I’m talking dot.com bubble…), you should know what I am talking about. On the other hand, most of you will be young and far away from retirement, so there’s nothing wrong with a little risk in your investment - if you’re that sort of person.
So here we go - the Top 5 indices of the “What are we tracking” series:
- India - BSE Sensex (BSE 30): 5 year growth rate of 400.88%
- UK - FTSE Fledgling: 5 year growth rate of 126.66%
- UK - FTSE 250: 5 year growth rate of 92.65%
- Hong Kong - Hang Seng: 5 year growth rate of 90.28%
- Spain - IBEX 35: 5 year growth rate of 84.53%
I don’t know about you, but I’m quite impressed with these numbers. Most of them would have doubled your capital since 2002! The next challenge, however, is going to be to find index funds that are actually tracking these indices. I will keep you posted on my research, but you are obviously more than welcome to share your experiences and/or tips with the rest of us in the comments!
