Well, it appears that many Indians still have reservations about mutual funds. I have received many mails from "ex-investors", who lost money in mutual funds and hence quit. For the present, let's not get into the reasons. I will do a separate blog post on this.
But I want to emphasize just one thing...
... if an untrained driver causes an accident, is it the car's fault?
... if a driver breaks the traffic rules and causes an accident, again, is it the car's fault?
You are smart enough to guess what I am alluding to...
So let me move on and share with you a different perspective to look at "returns". This is a very simple and straightforward approach, free from all the confusing jargon or the mind-numbing calculations. Even a school kid will understand and appreciate these numbers.
Rs.10 is now valued at
- Rs.257 (in Franklin India Bluechip Fund)
- Rs.255 (in HDFC Top 200)
- Rs.182 (in ICICI Prudential Top 100)
- Rs.336 (in HDFC Equity Fund)
- Rs.287 (in Franklin India Prima Plus)
- Rs.188 (in Birla Sunlife Advantage Fund)
- Rs.397 (in Franklin India Prima Fund)
- Rs.198 (in Sundaram Select Midcap)
- Rs.521 (in Reliance Growth Fund)
- Rs.324 (in Birla Sunlife Equity Fund)
As you can see, over the years, the unit value as multiplied many times over.
That's around 18 to 50 times growth in one's investment.
That's an average returns of 18-22% p.a. for last 15-18 years... that too tax-free!
That's awesome money for "zero" work.
That's stupendous reward for one and only one thing "patience".
That's available to "each and every" investor; unlike direct equity where only a very few make money, while the majority go home empty pockets and empty bank accounts.
Convinced? Or you still have some doubts?
