The S&P 500 index is a benchmark of American stock market performance, dating back to the 1920s. The index has returned a historic annualized average return of around 10% since its inception through 2019 and thats a good representation of the market.
Compared to fixed deposits, yearly returns ranges from 0.5%-2%. While that average number of 10% may sound attractive, timing is everything - get in at a high or out at a relative low and you will not enjoy such returns. Inflation is around 3.15% yearly so the actual returns is only at around 6-7%. That said, its still better than parking your money in the bank and gaining that 0.05% interest.
So thats why its important to time the market and enter at the right time. If you had just entered into the stock market 1 month ago, your probably would have lost 30% of your funds that you use to enter.
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