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I am based out of India 70% of my portfolio is in equity mutual funds, and the rest in safe instruments. The Indian stock markets have given good returns and my
by ringofchaos 3y ago
I am based out of India
70% of my portfolio is in equity mutual funds, and the rest in safe instruments.
The Indian stock markets have given good returns and my equity portfolio has been doing 17% CAGR (10% inflation-adjusted)
But I have planned for conservative returns of 12 percent overall
- tcbawo 3y agoThat seems like a very ambitious rate of return, given that India seems to have ~4% inflation rate.
- ringofchaos 3y agoLong term inflation rate has been 7 to 8 percent in india.
- WXLCKNO 3y ago12% is not conservative
- ringofchaos 3y ago40 year index return from Indian stock market have been around 15 percent without dividend reinvestment. The long term inflation rate has been 7 to 8 percent and bonds have returned par with inflation rates
- unmole 3y agoIt is in India.
- smiths1999 3y agoI apologize if this is a stupid question but why wouldn't everyone be investing in India with these returns being standard? In the US we would assume a conservative rate of 7%
- ringofchaos 3y agoWhen adjusted for usd returns might not be that great. Indian currency have been depreciating a lot against usd. On the other hand my own portfolio has a mutual fund that invest in US stocks for more diversification.
- unmole 3y agoThe 12% returns are not adjusted for inflation or depreciation. Historically, India had a much higher rate of inflation than the US. And the rupee has continuously lost value against the dollar. US 10 year treasury yields are ~4% while Indian treasury yields are ~7%.