Today Everbody are aware of Mutual Funds! Thanks to AMFI- “Mutual Funds Sahi Hai Campaign”and various investors awareness programmes conducted by various fund houses
Today all are aware that mutual funds especially equity mutual funds works best in the long-run. But due to hasty decisions taken by investors, they withdraw their corpus in the interim. Even though they know that equity mutual funds works best in the long term, getting thrilled in bull market and getting panic in bear market, they withdraw their corpus in a hurry!.
By withdrawing, they end-up loosing the power of compounding! As per the historical data, equity markets delivers 15-18% Returns eventhough there are furious market corrections in short term in the market.
So, if you trust the economy and hold for long term, you could easily become crorepati in the upcoming years! The only thing you have to do- Regular Investments and holding for long term.
As Indian markets historically gives 15-18% Return in the long run, you must follow financial discipline and choose good funds with stellar track record.
How to become crorepati through mutual funds– As Indian markets gives 15-18% in the long run, lets assume your mutual fund gives 15% CAGR(Compounded Annual Growth Rate), to reach 1 crore mark, you have to invest 15,000 Rupees/Month for 15 Years.
Thatmeans, in simpler words, if you follow 15:15:15 Rule(15,000 Rupees/month for 15 years at 15% Return). you would end-up crorepati. This is possible only through power of compounding which works best in volatile conditions in the long run.
It is real fact, one could reach 1 crore rupee target mark by investing 15,000 Rupees consistently for 15 years. We can’t decide the market rate of returns, but historically it is proven that stock market/mutual funds gives 15% CAGR in the long run.
So don’t neglect mutual fund investments, start early, invests regularly and hold for long term. This is the success sutra to be followed by a retail investor to reach 1 crore mark!