Ask Colin

Is 20%pa a reasonable rate of return for the average stock market investor?

It is quite achievable in good conditions. That means a market that is generally moving up.

However, it is very difficult in a sideways market and will be impossible in a market that is trending down.

Over all market conditions, this would be at the top of the range for the best professional funds managers.

In fact, most professional funds managers struggle to beat the index, which has a long term return of about 12.5%. Anyone doing better than this over any significant number of years is doing really well.

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