In Jan 2008, Nifty first touched 6000 and with current value of nifty let us assume nifty regains 12000 by Jan 2020. Nifty index doubled in 12 years with annualised return of around 6 percent. For a 12 year long period index returns gets doubled in 12 years.. Does it help beat inflation...
PPF is EEE category and would have fetched annualised returns of roughly 8 percent in debt instrument..
If you would have invested for a 15 year goal in 2008.. don't you think you will be well short of your goal. If nifty is giving you 6 percent annualised return for 12years.. how many of well managed funds going to give 12 to 15 percent returns for the same period..
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.
PPF is EEE category and would have fetched annualised returns of roughly 8 percent in debt instrument..
If you would have invested for a 15 year goal in 2008.. don't you think you will be well short of your goal. If nifty is giving you 6 percent annualised return for 12years.. how many of well managed funds going to give 12 to 15 percent returns for the same period..
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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