In the earlier post, we saw when Nifty Index moved from 6000 to 12000 the annualized returns was 6% and a debt instrument like PPF would have given a 8% annualized return which is exempted from Tax.
So, If Nifty gives a 6% returns can we expect the well managed funds to give a return of 12-15%.
I took Aditya Birla SL Frontline equity, HDFC Top 100, Franklin india Blue chip. These three funds were hot selling funds and many MF investors have in their portfolio. So what is the annualized returns of these when you invested on 1st Jan 2008.
AB SL Front line Equity - 8.57%
HDFC Top 100 - 9.04%
Franklin India Bluechip - 7.06%
So for a 12 year long period holding it in well managed funds like the above gives you just one percent extra return than your debt instrument like PPF. Remember today we have LTCG at 10% as well.
Bottom line once again: Bottom line : MF investments are good for your financial life but you need to do these by being more aware of it as compared to before. The old method of deciding the sip amount and letting it to be in auto mode may not work anymore.
So, If Nifty gives a 6% returns can we expect the well managed funds to give a return of 12-15%.
I took Aditya Birla SL Frontline equity, HDFC Top 100, Franklin india Blue chip. These three funds were hot selling funds and many MF investors have in their portfolio. So what is the annualized returns of these when you invested on 1st Jan 2008.
AB SL Front line Equity - 8.57%
HDFC Top 100 - 9.04%
Franklin India Bluechip - 7.06%
So for a 12 year long period holding it in well managed funds like the above gives you just one percent extra return than your debt instrument like PPF. Remember today we have LTCG at 10% as well.
Bottom line once again: Bottom line : MF investments are good for your financial life but you need to do these by being more aware of it as compared to before. The old method of deciding the sip amount and letting it to be in auto mode may not work anymore.
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