In the past 10 years, SENSEX has moved from 22K to 65K which is only 11.44% CAGR returns due to low GDP growth below 5.5 to 6%. (This is in spite of low base in 2014 due to tough economic situations after 2012).
Prior to that, between 2003-04 to 2013-14, SENSEX moved from about 5K to 22K/23K which was close to 16% CAGR with about > 8% GDP growth. This was the period when I started my investment journey.
Above figures are approximate but very close.
So, SENSEX growth has been relative to GDP Growth. It is approximately 2 Times GDP Growth.
Considering the fact that, GDP growth will remain mostly below 6% going forward, if individual investor can generate 15% to 16% returns those will be certainly good in my opinion.
With 15% CAGR you can still compound money at very good rate. Funds will double within 5 years or even in 4 years which is reasonable expectation.
Mutual Funds might beat this but with relatively higher risk. Hence Risk adjusted returns need to be seen.
It is also possible to generate these returns in Large Caps with moderate exposure to Mid Caps, if investor follows value investing approach.
These are few observations from my journey.
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