Do You Know The Annual Average Return for the S&P 500*?
*The S&P 500, or simply the S&P, is a stock market index that measures the stock performance of 500 large companies listed on stock exchanges in the United States. It is one of the most commonly followed equity indices, and many consider it to be one of the best representations of the U.S. stock market
The S&P 500 Index originally began in 1926 as the "Composite Index" comprised of only 90 stocks. According to historical records, the average annual return since its inception in 1926 through 2018 is approximately 10% - 11% per annum.
Due to the current crisis caused by Covid-19, the S&P 500 has dropped some 25% due to fear and uncertainty, but this negativity will not continue forever. Therefore, we believe it represents a great opportunity for investors over the medium to long term.
What better way to capture this potential growth than by setting up a regular savings plan that invests into this index.
But if the volatility makes you a little nervous, then what if the plan also had a capital guarantee?