The Nifty’s supernormal positive or negative return in the initial years is followed by moves in the opposite direction. Investing every year from 1999 to 2015, the annualised returns converge into a narrower range after the 10-year+ mark, irrespective of the wild variation in the early years or the quantum of rise or decline in Nifty levels during the initial years, gets normalised in the 10 year period, said the study.
