Wise Wealth Advisors

D.Muthukrishnan (Muthu), Certified Financial Planner- Personal Financial Advisor

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Aim really big

Posted by Muthu on September 21, 2014

How would you feel if you can have Rs.60 crores after 20 years?

Those of you who have accumulated Rs.1 crore so far and doing a SIP of Rs.1 lakh per month (through equity funds), can expect to be worth around Rs.60 crores in next 20 years. That is USD 10 million in 20 years. You would be in top 1% of not only India’s population but the world population itself.

If you’ve Rs.50 lakhs invested in equity MF so far and is doing a SIP of Rs.50,000 per month, the value after 20 years would be Rs. 30 crores. With USD 5 million, you would also be in the cream of world population, top 1%.

For the above illustration, I’ve assumed good diversified equity funds delivering an annualized return of 18% over next 2 decades.

As India moves from a low income per capita to a medium income per capita country, over next 2 decades, with nominal GDP (real GDP + inflation) growth rate of around 15%, 18% annualized returns from stock market (equity funds) look very much possible.

As you are aware, stock market growth happens in spurts with a high degree of volatility. In bear markets, even a diversified equity fund falling by 40% or so is not uncommon.

You’re reaping rewards now for sitting tight in one bear market. Even in a secular growth country like India, we’ll go through couple of bull and bear cycles in next 2 decades. If you can sustain the temperament and the patience you’ve developed in last few years for next 2 decades, huge fortune is all yours.

I’ll continue to do my best to assist in developing the right temperament and behavior to stay the course. The rest is in your hands.

Aim really big.

Patiently stay the course.

4 Responses to “Aim really big”

  1. Nishanth Muralidhar said

    Yes, will do 🙂

  2. jayantfine said

    SIR , I ALWAYS EAGERLY WAIT FOR YOUR ARTICLES , AS YOU ARE ENCOURAGING ALL OF US NOW WHEN MARKET IS ON UP SIDE , PL CONTINUE ENCOURAGING WHEN THE MARKETS WILL BE IN DOWN SIDE .

  3. JITENDER said

    ALTHOUGH BEING A MUTE SPECTATOR FOR LAST 2 YEARS OR SO THIS IS MY FIRST REPLY…
    MUTHU SIR .. YOU HAVE INSTILLED A BOOSTER DOSE OF CONFIDENCE IN ME BY POSTING THIS ARTICLE… HUMBLY YOURS
    THANKS AS ALWAYS…
    JITENDER

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