A tale of three indices
The NSE has three financial indices listed that provides a rare window into how different parts of the financial sector has performed over the years.
|CNX PSU BANK||2004-01-01|
Returns in the financial sector comes with some very fat tails. If one could consult an oracle on the timing of these big swings, there’s a pretty packet for them.
If you had stayed invested since 2004-01-01, here’s how much you would have made:
|CNX PSU BANK||265%|
Note: These are cumulative numbers, not annualized returns
If you notice, PSU banks are yet to recover from the draw-down that occurred August-2013.
Investors have been on a PSB binge ever since the Modi effect took shape. Will this time be different for investors?