2 lakhs - 15 years - into 1 crore - possible?

#1
Hey guys, I'm new to investing. So new that I havent got my pancard yet :p
But I will get 1.5 l from a relative in 2011 and my parents said that they'd gimme 50k if I wanted,:D So I was planning on creating A portfolio with mutual fund investments. And I plan to spread it out in equity, equity diversified, balanced and index funds.(I've decided to avoid debt as I want it to be long term.. am I doing the right thing by the way?:))

So is it possible for the 2 lacs to become 1 crore in 15 years?:confused: Please don't laugh. Like I said, I'm a rookie :p

Regards,

Sid
 

milind

Active Member
#2
Hey guys, I'm new to investing. So new that I havent got my pancard yet :p
But I will get 1.5 l from a relative in 2011 and my parents said that they'd gimme 50k if I wanted,:D So I was planning on creating A portfolio with mutual fund investments. And I plan to spread it out in equity, equity diversified, balanced and index funds.(I've decided to avoid debt as I want it to be long term.. am I doing the right thing by the way?:))

So is it possible for the 2 lacs to become 1 crore in 15 years?:confused: Please don't laugh. Like I said, I'm a rookie :p

Regards,

Sid
Lets see - 2L to 1Cr is 50X. Assume no taxes.
8% per year compounded annually gets to 3.42X in 16 years
15% gets you 9.35X
25% gets to 25X
Its possible, but you need luck on your side to have invested in 5**** funds of 2025 (as against current 5* funds) and no nasty bear market.
One comment - be aware that proper asset allocation involves different asset classes like debt, real estate etc whether you are talking 5 years or 15 years. You can not assume luck will always be on your side, and need some risk management - which asset allocation somewhat provides for.

-- Milind
 
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