Do you need 25% p.a. return on your portfolio?

Many investors chase a target return of 25% or even more on their portfolios. Are the risks worth it?

“Namaskar 🙏😇 Very Profitable Deal Want To Share Within 10 Months Profit of 50 - 75 Lac”

My father got this message recently from an acquaintance.

He didn’t mention the investment amount 💰.

But still, do we even need such kind of returns?

Let us understand whether this kind of return is even required!

Did you know how much money can you make by the age of 60 if:

1. You start at the age of 25;

2. Start with an SIP of INR of 20,000 per month 💸;

3. Increase the SIP with increase in your income level, say 10% p.a.;

4. Ignore the noise and continue doing this till the age of 60; and

5. Generate a return (or XIRR) of just 12% over this corpus

You can have a corpus of 💰 ___

❓Any guesses?

5 Cr?

10 Cr?

15 Cr?

Nope, it is just INR 35,12,31,480 or INR 35.12 Crores

Now tell me, if I tell you that with discipline you can create this much corpus, will you look for such get rich quick schemes?

”But that will make me an immediate profit. This will take a lot of time.⏰”

Agreed! ✔️ But had such schemes been true, no one would have been working.

Not saying that you can’t achieve financial freedom early, definitely you can! 🙌🏻

Just that these schemes are probably devised to give us fake hopes.

Won’t that person buy that scheme himself rather than telling my father?

”He might not have money,” you might say.

So, when someone doesn’t have skin in the game, that person can say anything if that makes him commission 💸.

I have seen many intermediaries and product sellers lying on the face to make a quick profit.

And even if you go and look at that underlying a year forward the value is most likely the same only.

I know, this is very basic gyaan. But we all fall for it.

Because we all want to grow rich quick 🤑🤑

👉🏻 If you really want to grow rich quick, then you need to focus on your skills and improve in your job, professional career or your business

And park your surplus money in a disciplined fashion in the right equities and mutual funds 📈

Also, keep on saving something in savings instruments like PPF etc. to protect a part of your overall portfolio 💵

Such get rich quick schemes are mostly a sham. Had such deals been true, no one would have been doing real work.

Equities take time to compound and by far they are the most regulated and clean instruments to create wealth💰 in real term.

And even safe, if you do it with caution and study.

Let me know in the comments, if you or your family members have also got such 50-75 Lac profit opportunities in the next 10 months :)

Also, if you feel like learn more about Basics of Stock Markets and Fundamental Analysis, we have designed a budget combo for you

Also, if you want to learn more about Mutual Funds, here you go:

We teach more about Financial Planning, Insurance and leading a good Financial life by avoiding shams and protecting your family in our Personal Finance Club. Here it is:

Well, that is all from my side. If you want to create your customised corpus calculations, we have them for you for free :)

Join our FREE of cost Learn Personal Finance Community to download these calculators.

Just join the community and click here to download the “Learn Personal Finance - Corpus calculator”

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Let us make India a Financially Literate nation together 🇮🇳🇮🇳

~ CA Kanan Bahl

Disclaimer: Shared for educational and awareness purposes only. Please refer a SEBI registered Investment Advisor before taking any investment decision.