Returns in Equity Mutual Funds

Returns are purely dependent on markets for all Equity Mutual Funds.  We can expect good returns in longer period.  Goal based investments are more profitable if invested for 10 years / 15 years / 20 years and so on.

Long term investments are suitable in below situations:

1. A person aged 30 years has 30 years for retirement.  So if he starts at the age of 30 years and start SIP for next 30 years, he can accumulate good wealth.

2. Young couple with new born kids.  They can start investment for next 20 years.  After the kids grown up, the accumulated fund can be used for their kids higher education or marriage.

Every one will face above situations in their life.  So planning early will give good returns.
In the past 20 years, Equity Mutual Funds gave Compounded CAGR return of more than 15% annually .  We can expect this return in next 20 years also if we continue investing. 





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