Regulatory Alerts2016-12-09
Comparing Uganda’s Stock Market Performance with Bank Deposits and Government Bonds
A Capital Markets Authority officer analyzes the Uganda Securities Exchange performance from October 2013 to October 2016, demonstrating that a diversified equity portfolio yielded a 28% annualized return. This equity performance significantly outpaced the 17% return from rolled-over one-year government bonds and the 13% return from commercial bank fixed deposits over the same period. The study highlights that despite market volatility and a bear market phase, long-term share investment provided superior compensation for risk compared to safer fixed-income alternatives.
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