KARACHI - Despite the security issues, global financial turmoil and few stock market crises that caused equity prices to tumble, investors at the Karachi Stock Exchange made a 31 per cent average annual gain in last ten years outpacing all the returns generated by all other asset classes, according to a research analyst. Muhammad Suhail, Head of a Research Securities in a report issued on Wednesday said the decade 2000s was not a lost decade for the investors of Pakistan equities. Interestingly, in the last decade, local stock market performed at a time when US stocks posted a worst decade ever. The US investors earned 28 per cent returns during the decade under review. He said one Pak Rupee invested 10 years back in basket of stocks in Pakistan would have grown to Rs6.7 and similarly one US dollar would have grown to $4.1 in last 10 years. As per the report revelations, in terms of returns, 2000s was far better than 1990s. And out of 10 years, local equities as measured by benchmark total-return KSE Index, generated positive returns for 8 years. The calendar year 2001 and 2008 yielded negative returns of 16 per cent (US$18pc) and 58 per cent (US$67pc), respectively. The latter due to infamous price floor rule imposed in the aftermath of global financial meltdown. The highest return was seen in 2002 of 112 per cent (US$118 per cent) mainly due to financial sector reforms, government deregulation policies and improved investors confidence. We have used arithmetic average to arrive at average returns in line with the popular study of Ibbotson Associates. This methods assumes that investor is not passive and re invest all at the end of each calendar year and that is why this return is higher than what arrived through compounded average return technique, Analyst in his report stated. The report further said though investors in Pakistan dont invest aggressively in gold due to lackluster trading at National Commodity Exchange, but it is worth noting that investment in gold yielded second best average returns of 16 per cent a year. Except for a minor decline in year 2000, gold has posted 9 years of consecutive gains. This is due to rapid changes in international geo-politic scenario and global financial woes. Adding to this, development of international commodity markets also played a vital role. The report mentioned that different investments generate different degrees of risk with government papers having no risk whatsoever except for inflation.