wealth creation

wealth creation

If you are a long term investor, equity must be the dominant part in your portfolio. In the long run, there is no risk in stocks. Mutual Funds provide you with a simple and effective way to invest in stocks. Let’s look at the stock market history in India.


01 April 1979 100
16 Jan 2019 36321
CAGR 15.95%
15.95% annualized return in the last 39 years.
A normal investor can opt for a Systematic Investment Plan (SIP) in a well diversified mutual fund to participate in the stock market. SIP allows the investor to invest a fixed amount of money at regular intervals (quarterly, monthly, weekly) in a selected fund. Consider a fund called HDFC Equity Fund. This fund has started in 1995. This is one of the oldest funds in India.
If someone started an SIP of Rs.1000/- into this fund from 1995 onwards, till now he has invested Rs.2,80,000/- . The market value as on September 2018 was 66Lakhs!!

SIP performance

Total amount invested 2,80,000
Market value as on Sep 2018 66,70,000
CAGR 21.89