Markets have delivered solid long-term returns, but recent performance has been weak, which explains most of the complaints.
As of early October 2026 (Nifty ~22,520), trailing CAGRs for the Nifty 50 (price returns; total returns including dividends are typically 1–1.5 percentage points higher) are roughly:
3 years: 4.5–4.7%
5 years: 8%
10 years: 11%
These are in the range of historical norms for the longer periods. A 10-year 11% nominal return is respectable after accounting for Indian inflation (recently in the 4–5% range).
Over 5 years it is more moderate, and over 3 years it is modest—barely competitive with safer options like bank FDs (generally ~6–7%) once you factor in equity volatility and risk.
Why the complaints?
People focus more on recent experience than on decade-long averages. Key reasons:
2026 has been a poor year. The index is down roughly 13–14% year-to-date and is about 14–15% below its early-2026 all-time high near 26,370. This is on track to be the weakest calendar year since 2011. A multi-week losing streak earlier in the year amplified the pain. FIFTEEN years of good returns? Ignored.
Recency and entry timing. Many retail investors (via SIPs, mutual funds, unit linked plans and direct equity) entered or increased exposure during the strong post-COVID/liquidity-driven run of 2020–2024. For those investors, the last 1–3 years feel flat or negative. Some broader indices are worse in performance.
Relative underperformance. India has lagged markets with stronger AI/tech exposure (e.g., Korea, Taiwan, and US tech). High starting valuations, slower-than-expected earnings growth in some periods, and the absence of a big AI theme have weighed on sentiment. None of use ‘experts’ in the market would have known that the money will leave the Indian markets in 2023 to chase the theme called ‘AI’.
Macro and flow pressures. Elevated oil prices linked to geopolitical tensions, a weaker rupee, higher global yields, and substantial foreign portfolio investor outflows have pressured the market. Saudi Arabia would have sold equity and gold to fund the military action, right? Domestic flows have provided some support but not fully offset the selling of all the FIIs.
Behavioural factors. Equity investing involves drawdowns. After a multi-year bull phase, the correction feels jarring. Investors often overweight recent losses (recency bias) and underweight the longer compounding history. Valuations, while not extreme everywhere now, were rich earlier, so mean reversion is occurring.
In short, the long-term numbers support the view that Indian equities have not been a poor asset class over 5–10 years. The complaints are largely about the sharp recent correction, relative performance, and the experience of investors who bought into elevated levels. Markets are cyclical; periods of underperformance are normal and often set up better forward returns when valuations and earnings align, though outcomes remain uncertain and depend on oil, global flows, domestic growth, and corporate profitability.