While recent performance in the Asian markets has been impressive, we believe it is important to look beyond headline returns and understand what has actually driven them.
Global Market Performance (USD)
The table above highlights an important distinction between recent market performance and long-term wealth creation.
Much of the strong performance being discussed today has been generated over a relatively short period of time. MSCI Emerging Markets returned 33.6% in 2025 that resulted in a 5-year CAGR of only 4.9%, the CSI 500 delivered 36.1% with a 5-year CAGR of 3.2%, Taiwan returned 31.5% and lifted its 3-year CAGR to 38.1%, while the KOSPI gained 79.8% with a 3-year CAGR of just 0.1%. This illustrates poor long term returns despite significant recent rally.
India’s experience has been different though the Nifty 500 TRI delivered a modest 2.2% return in 2025, its 3-year CAGR is 8.7% and the 5-year CAGR is 6.6%, reflecting a more consistent return profile supported by broad-based economic growth and earnings expansion.
It is also worth noting that much of the AI rally was driven by a handful of technology and semiconductor companies rather than broad-based market participation. In Taiwan, for example, TSMC alone accounts for roughly 40% of the benchmark index.
While the rally delivered exceptional returns, we believed the balance between potential reward and risk had become less attractive. More importantly, investing successfully in such environments requires getting both the entry and the exit right.
Long-term wealth creation comes not from chasing every rally, but from remaining disciplined and compounding capital through market cycles.
Please note that the above should not be construed as an advice from us. Our company is in the business of distribution of suitable Financial Products to investors describing product specifications, material facts and the associated risk factors. We are acting as a Distributor for these products and facilitating transactions