Capital-funded old-age provision with shares! 120 years of shares and government bonds in the yield comparison (in German)
Our current study with the Verbraucherzentrale Bundesverband (vzbv) and FINVIA Family Office GmbH shows that a broadly diversified investment in equities can generate attractive returns over the long term without leading to higher risks compared to less profitable investments.
After deducting inflation, equities have generated 5.7 per cent returns per year over a period of 120 years - bonds, on the other hand, only 2.1 per cent. At the same time, long-term investment in shares is also less risky than investment in government bonds. It took a maximum of eleven years for investors who entered equities at a historical high to recoup a subsequent loss. With government bonds, investors had to wait 53 years in the worst case until they reached the profit zone again.