We need to dream big when we are investing in Equity market. Sensex started with 100 points in 1st April 1979. Recent high sensex touched 52,000 plus points. Sensex gave a compounded annual growth rate (CAGR) 16.10% in the period from 1979 to 2019.
This is looking much interesting. I am very happy to know that what will be my Investments value in mutual funds and stocks, if sensex touch 2,00,000 in next in 10 years.
Every investor has this question within their mind and how to calculate this? Mr Rakesh called me and asked the same Question. He is investing Rs 48,000 monthly SIP since 5 years.
As per as his current portfolio market value Rs 46,87,578
CAGR 18%
What will be Mr Rakesh portfolio by 2031 if sensex touch 2,00,000 points? Sensex may touch this figure with 15% CAGR. Let us assume what if Rakesh portfolio performed the same 15% CAGR with the existing value and monthly sip Rs 48,000 if he continues the same for next 10 years. Check the below calculations
Let us have a look what will be the yearly wise calculations in the below table.
By 2031 Mr Rakesh can create Rs 3.15 crore as per as 15% CAGR.
Let us assume 12% returns. Let us check the same if Mr Rakesh Investments delivered 12% CAGR, what will be the Portfolio value by 2030?
Year by year growth calculations
Mr Rakesh can Create Rs 2.53 Crores.
Even 12% looks attractive. Actively managed Mutual funds can deliver returns above the benchmark. There are some funds performing 16-18-20% CAGR in their category. Even you have some funds which are delivering above 15%. So let us assume all our funds average returns 12-15% CAGR is a good deal.
Stay investing for your goals. Keep your investments target for next 10 years. If you are increasing the duration another 2 years like from 10 to 12 years that will be amazing you can expect more wealth in the name of power of compounding. If you are increasing your SIP contribution with yearly top UP 10% this can add another 50 lakhs at the end of the value. Don’t worry about markets and sensex. What we have received returns since last 4-5 years can expect in future too. Think big numbers. Let us create Rs 5-10-15 crores by 2031. I am here to help you and guide you with all times.
Mutual funds are real wealth creators. Follow the goal based investments planning. Once you fixed the goal stay with the goals and enjoy the rest of the life with financial freedom.
Contact me for your portfolio review and what will be your portfolio value by 2031 as per as your current value. I will calculate and share your email id.
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SRINIVASA M
AMFI Certified mutual Fund Distributor
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