What Is the S&P 500? How the S&P 500 Has Performed Over the Past Decade
If you’ve spent any time looking at financial news, you’ve probably seen those three letters and a number: S&P 500. It sounds official, maybe even a bit intimidating. But here’s a secret: the S&P 500 is actually one of the most human indicators of how our modern world is moving.
At Motilal Oswal, we believe that investing shouldn't feel like solving a math problem. It should feel like participating in the success of the brands you use every day. We're going to walk through what the S&P 500 actually is, how it’s been performing for people over the last decade, and why Index Funds are the stress-free way to get in on the action.
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What exactly is the S&P 500?
Think of the S&P 500 as the Elite Squad of the American business world.
It’s an index which is just a fancy word for a list of 500 of the largest, most successful companies listed on US stock exchanges. When people say the US market is up they are almost always talking about this group.
The Brands You Already Know
You don’t need to be a Wall Street expert to know the companies in the S&P 500. You probably used several of them before you even finished your morning coffee:
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You checked your Apple iPhone or Microsoft Windows laptop.
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You searched for something on Google (Alphabet).
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You ordered a package from Amazon.
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You watched a show on Netflix or paid for lunch with your Visa card.
When you invest in the S&P 500, you aren't just betting on the economy, you are becoming a tiny part-owner of the most innovative companies on the planet.
A Decade of Growth: How has it performed?
One of the most common questions we get at Motilal Oswal is: Is it too late to invest in the US?
To answer that let’s look at the last 10 years (2014–2024). It has been a wild decade. We've seen a global pandemic, wars, the rise of Artificial Intelligence, and shifting interest rates. Yet, the S&P 500 has shown an incredible ability to bounce back and grow every time.
The Numbers (Simplified)
If you had invested $10,000 (roughly ₹9 Lakhs today) in the S&P 500 ten years ago, you wouldn't just have seen your money grow by triple.On average, the S&P 500 has delivered a return of about 12–14% annually over the last decade.
Why did this happen?
1. The Tech Revolution: Companies like NVIDIA and Apple moved from being big to being global giants.
2. Resilience: During the 2020 COVID crash, the market dropped sharply, but it recovered to new highs faster than almost anyone expected.
3. The USD Advantage: For us in India, there’s a double bonus. Not only did the stocks go up, but the US Dollar also became stronger compared to the Rupee. This means your investment gained value twice!
Understanding Index Funds: The Lazy Way to Wealth
You might be thinking, Do I have to pick which of these 500 stocks will do well? The answer is a loud NO. This is where Index Funds come in.
An Index Fund is like a pre-packaged basket. Instead of you trying to find the next big thing, the fund automatically buys all 500 companies for you.
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It’s Cheap: Since no high-priced fund manager is picking stocks (they are just following the list), the fees are incredibly low.
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It’s Diverse: If one company in the list of 500 goes bankrupt, you still have 499 others keeping you steady.
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It’s Transparent: You always know exactly where your money is.
A Quick Comparison: Picking Stocks vs. Index Funds
How to Start from India (The Motilal Oswal Way)
In the old days, investing in the US was a paperwork nightmare. Today, it’s as easy as ordering food online. You have two main paths:
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The Mutual Fund Route: You can invest in the Motilal Oswal S&P 500 Index Fund. You pay in Rupees, and we handle the rest. This is perfect for SIPs.
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Direct US Stocks: Through the MO RIISE app, you can actually buy fractions of US shares. Want to own ₹5,000 worth of Berkshire Hathaway (Warren Buffett’s company)? You can do that!
To explore US Stocks, click here