7 stock indexes in Southeast Asia compared from 2012-2022. Which would have made you rich?

If you had invested US$1,000 in any one of these seven major Southeast Asian stock indexes in 2012, how rich would you be today in 2022? The recent decade has been pretty turbulent considering the US-China trade war, a global pandemic and the economic disruptions it caused, and the Russia-Ukraine war. It’s been pretty eventful. Naturally, investing anywhere, from real estate to the stock market and crypto, comes with risks as millennials and Gen Zs will learn.

But what if you’re the sort who is conservative, yet demands good returns on your investment? Many financial consultants would often recommend investing in a basket of stocks from a particular country or industry. These are called index funds and they’re far less risky than investing in individual stocks. Just like regular stocks, you can buy and sell them, though many would advice you to hold for a long period of time from 10 to 20, and even over 30 years.

The goal is to grow your US$1,000 without worrying too much about what’s happening. In Southeast Asia, there are six major stock indexes that measure the performance of businesses in each nation. These indexes indicate how investors are perceiving the country’s economy based on the performances of companies in the indexes.

Indonesia has come as a surprise to many. Under its President, Joko Widodo, the largest Southeast Asian nation has surpassed the expectations of many analysts and investors. If you had parked your US$1,000 10 years ago, it would have grown by 64.

6 percent to US$1,646. If you had invested in Malaysia from 2012 to 2022, we’ve got bad news for you: Your US$1,000 investment would have been down by 15 percent. That means, your investment’s current value would be US$850.

Much of the volatility involves financial scandals and the subsequent political crisis that engulfed the nation from 2018 onwards. The pandemic and the Russia-Ukraine war only made the situation worse for Malaysia, making it the worse performing index on this list in the recent decade. US$1,078.

That’s how much your investment would be worth if you had invested 10 years ago. Essentially a 7. 8-percent return.

Not too shabby considering the fact that the Philippines was under President Rodrigo Duterte’s draconian rule from 2016 to 2022. Had it not been for the pandemic, the returns could possibly have been more. Had it not been for the pandemic, the returns could possibly have been more.

Singapore is the darling of many investors looking for stability and good returns. But peer in closer and you’ll be left surprised. From 2012 to 2022, Singapore’s STI has surprisingly returned a measly 1.

55 percent. US$1,015. 50 would be your investment value today.

But at least it’s still better than their neighbors in the north, right? Surprise, surprise. Thailand is doing pretty all right. In 10 years, the top 50 companies have returned an average of 9.

17 percent to investors. That’s US$1,091. 70.

Sure, there were plenty of ups and downs with the pandemic battering Thailand’s economy which mostly relies on tourism. However, the Land of Smiles can pat themselves on the shoulder as they fared pretty alright compared to regional peers. Vietnam is a little special.

It has two stock exchanges. The oldest is the Ho Chi Minh City Stock Exchange, established in 2000. Five years later, the Hanoi Stock Exchange was built.

Both stock exchanges have their own indexes. Here’s how they fared from 2012 to 2022. Look at that chart.

It’s a thing of beauty isn’t it? If you had invested US$1,000 in 2012, your money would have doubled to US$2,050! That’s an eye-watering 205-percent return, and it’s all thanks to the rallies in banking and real estate stocks. Impressive, but Vietnam is not done yet. Next up is the Hanoi Stock Exchange Equity Index, which is the best performing one on this list with a whopping 397.

7-percent return. That’s close to a quadrupling of your US$1,000 investment. If our math serves us correct, your investment would be at a solid US$3,977, and all that from investing in an index.

Investing comes with its set of risks. Investing in an index fund, based on the examples above, could either make you comfortably wealthy, or poor with sleepless nights. You should be investing based on your wealth’s health and risk appetite.

Just because others are shoveling their cash into something, it doesn’t mean that that’s the best investment. And just because a country did historically well, it doesn’t mean it’ll continue performing that way forever. The same rule applies vice versa.

Ultimately, do your own due diligence always. After all, it is your hard-earned money (unless you stole it like this former Malaysian prime minister , then fuck you). Man picks up red money packet & people think he unknowingly accepted a ‘ghost bride’ Why did Reddit turn Bed Bath & Beyond into the latest meme stock? Man quits smoking for 14 months, spends the money he saved on a new kitchen How does buy now, pay later work? Cover image sourced from AP/Gulf News and Barron’s .

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