Are indices are ever growing type?
The calculation methodology of indices gives an impression to me that indices will always grow when time pass on? Is it true?
If so, can I say that if I invest in index and wait for 10 years, then the returns would be sure (even if one or two global crisis happens in between)?
Index value is the weighted average of constituent stocks. And none of the stock is ever-growing. Hence we cannot conclude that index is ever-growing. Please throw some light on the calculation methodology you are referring?
Not really, there are up’s and down’s in Index as well. But over a longer time horizon, you can definitely get some appreciation or upward move.
What is important is not growth, but ‘how much growth’, whether you area able to beat inflation and make wealth for yourself and family is what is important.