Forget 16%-18%. Here’s Why Expected Returns from Equity Funds Should Be Much Lower
Moneylife Digital Team 22 June 2018
All of us have come across catchy graphics showing the power of compounding in investments. These usually read: “If you invest Rs5,000 every month, it can grow to Rs1 crore in just 20 years.*” There is always an asterisk sign in there somewhere which mentions ‘at 18% annual returns’.
It’s quite easy to arrive at Rs1 crore, if you tweak the variables, such that a paltry lump-sum investment of...
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