What i understand
In very long run, say over 10-20 yrs,
Sensex @11-12% cagr return
Large cap@10-12% cagr
@mutual fund@12-14%(10-16%)
Warren buffet@20% cagr return
So, if we have15-17% kind return, i think it is best.
What Peter lynch says
“I have heard people say they would be satisfied with 25-30% cagr return.
At that rate they would soon own half the country along with japanese and the bass brothers.In certain yrs you will make 30% but there will be other yrs when you will make 2% or perhaps lose 20%”
=What if one expect huge return?
That will make person greedy and he/ she may take irrational decisions .So never expect unlealistic profit in short
=One should expect minimum 14 to 15% CAGR return after 3 to 5 yrs of investment.
=After 3 to 5 yrs, if you dont get 14 to 15%cagr ,invest in index fund or well managed mf
| Subscribe To Our Free Newsletter |
