Historical KLCI Returns

 

Historically, since 1995, KLCI price index hasn't really done much for Buy and Hold investors.

Note the 3 big crashes/dips:

1. Asian Financial Crisis in 1997-98, where KLCI fell from peak of 1278 down to 261.
2. Global Financial Crisis in 2008, where KLCI fell from peak of 1524 down to 801.
3. Mar 2020 Covid bottom, where KLCI fell from peak of 1896 down to 1207

If you bought at 31/12/94 when KLCI was 971 and held till today (7/1/24 1487.61), your price returns is around 1.5% per annum for a Buy and Hold index investor.

KLCI Price returns fluctuates.  If I have to quote a figure for what kind of long term price returns we can reasonably expect, based on historical returns, I would say between 1% to 3% per annum.

Long term KLCI dividend yield may be around 3% per annum (fluctuates a lot, depends on when you start investing).   

Total KLCI returns over the long term may be around 4% to 6% per annum (fluctuates a lot).

Beats FD long term.

May not always beat EPF long term.