What investment product can give about 9% - 10% p.a. over the past 20-30years?

Hi anon,

Historically, markets such as US (via the S&P 500) would give around 10% p.a. over the past 20-30 years. Over in Asia Pacific, some funds have also managed more than 10% over 10+ years.

However, this comes with a number of caveats. Firstly, this is based on hindsight. Will US markets continue their run in the coming years? Or will that level of growth shift to Asia Pacific? Secondly, this assumes that the investor stays invested. In reality, this is very difficult to achieve as most investors are still human and will react adversely to negative conditions.

You're asking what investment has performed a 10% annualised return in the last 20-30 years?

Over the last 20 years, US small caps and Emerging market small caps and value companies did 10+%.

The S&P 500, a good proxy for large cap growth US stocks only 5.6% from 1999 to 2019 but did 10% from 1989 to 2019.

But here's the thing, past performance is not indicative of future performance. And it is more likely today more than ever because most markets are overvalued and future returns are most probably going to be less fantastic.

But if you're trying to achieve double digit returns, the best bet following 90+ years of historical data would be to globally diversify and tilt your portfolio towards small cap and value stocks. Invest regularly and stay invested.