This chart illustrates the historical returns from 1986 through 2017 for indices covering various asset sectors.
While Australian shares have overall provided higher investment returns over this period, you'll notice that this road to fortune (purple line) has experienced many more ups and downs than saving in a cash account (red line). By investing in shares, your clients' returns may be higher in the long term, however, they will also experience a higher level of risk and volatility. The below chart (available to download as a PDF) may be helpful in your discussions with your clients.
Comparison of asset sector returns - December 1986 to December 2017
This document has been prepared by Westpac Financial Services Limited (ABN 20 000 241 127, AFSL 233716) (“WFSL”). This information has been prepared without taking account of your objectives, financial situation or needs. Because of this, you should, before acting on this information, consider its appropriateness, having regard to your objectives, financial situation and needs. This chart is based on an initial investment of $10,000 in each index as at 1 December 1986. *The S&P/ASX 200 Accumulation Index and ^S&P/ASX 200 Listed Property Trust Accumulation Index were introduced in March 2000, prior to this the ASX All Ordinaries Accumulation Index and ASX Property Securities Index were used. Historical index returns presented in the chart above have been sourced from Bloomberg. Information in this chart that has been provided by third parties has not been independently verified and WFSL is not in any way responsible for such information. Past performance is not a reliable indicator of future performance. Information current as at 31 December 2017. © 2018 Westpac Financial Services Limited