What happened
Vanguard's 2026 Index Chart revealed that $10,000 invested in Australian shares on 1 July 1996 grew to $132,931 by 30 June 2026 (9.0 per cent p.a.), while the same amount in cash reached only $32,459 (4.0 per cent p.a.). US shares were the top performer, expanding $10,000 into $218,544.
Why it matters here
With one in four Australian non-investors holding back due to fear of capital losses, long-term historical data emphasizes the substantial opportunity cost of maintaining excessive cash reserves. For Australian superannuation and retirement planners, growth assets remain essential to outpace inflation and compound wealth over long horizons.
What to watch
Subsequent Vanguard investor sentiment surveys tracking whether Australian self-managed super funds and retail investors adjust asset allocations away from cash holdings.
Source
vanguard.com.au