Owen Raszkiewicz September 29, More on: Without looking, I want you to guess: XJO gone up over the past 10 years? Remember, the ASX excludes dividends paid.

So what do you think? The answer is 9.

How to Buy Shares in Australia - Market Index

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Exchange Traded Funds: How to Buy and Sell Shares - Part IV

We will use your email address only to keep you informed about other products and services we think might interest you. Please read our Financial Services Guide FSG for more information. Still, for all the volatility and risk involved, the ASX has proven to be quite a bad investment to hold over the past 10 years.

Indeed, a record-breaking recession-less streak of economic growth has allowed Australian household debt levels to push to new highs above the pre-GFC levels of the USA and the major banks have been in prime position to benefit. Unfortunately, with the economy slowing as a result of dwindling mining investment, the banks are unlikely to be the driving force behind the ASX in the next decade.

Further, mining companies like BHP, Woodside, Fortescue and Rio Tinto, which make up a big part of the index, are likely to produce lacklustre results for shareholders as commodity prices continue to remain depressed.

So the bottom line is this: If you thought the ASX was a bad investment over the past 10 years, it could be terrible one over the coming 10 years. However, if want to maximise your returns, I think you need to actively manage your money.

However, what I am saying is you should ensure your share portfolio is invested for the long-term in quality companies, and always remain diversified across geographies and industries.

You can do this by opening a foreign shares account and purchasing directly. Alternatively, you could invest in a low-cost index fund that tracks a foreign market or buy an ETF on the ASX. So if you own an index fund tracking the ASX make sure you do your research because you may be locking yourself in for sub-optimal returns over the next 10 years. Motley Fool contributor Owen Raskiewicz owns shares of CSL Ltd.

Owen welcomes your feedback on Google plus see below , LinkedIn or you can follow him on Twitter ASXinvest. Unless otherwise noted, the author does not have a position in any stocks mentioned by the author in the comments below.

The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only under AFSL Authorised by Bruce Jackson. And all you have to do to discover the name, code and a full analysis is enter your email below!

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Home Compare Services Share Advisor Dividend Investor Extreme Opportunities Hidden Gems Million Dollar Portfolio Pro Everlasting Income Lakehouse Capital. Financial Services Guide Privacy Policy Terms of Service Subscription Terms of Service ACN: Commonwealth Bank of Australia ASX: Westpac Banking Corp ASX: National Australia Bank Ltd ASX: Australia and New Zealand Banking Group ASX: BHP Billiton Limited ASX: Telstra Corporation Ltd ASX: Rio Tinto Limited ASX: