However, the challenges here in selection and management are significant. We shall see in the sequel to this article, active mutual funds (large cap, mid cap, small cap, multi-cap, large and mid-cap) started underperforming the Nifty 50 at least seven years ago and not from Feb 2018 (when the market inhomogeneity become apparent).Įxit equity mutual funds? Yes, that is a solution, provided you shift to direct equity. New Tool! => Track your mutual funds and stocks investments with this Google Sheet!īut it becomes 12-13% over the long-term na? Unless you are mutual fund peddler, do you seriously Indian equity is going to be as rewarding in the future as it was in the past? So what is the solution?Īctive mutual funds? Sadly no. Would you confidently expect the lowest double-digit return before tax over the next 10 years from a Nifty 50 SIP? The simple truth is, no knows, no one can know. This table shows returns from Nifty 50 SIP and Nifty 500 SIP (total returns) over the last 1,3,4,….22 years. In a poll conducted in Nov, 2019 netizens voted, 1st-time investors will never buy MFs if they knew about risks. Mutual funds can never get sold (regular plan or direct plan) if investors realised the truth about them: there are no guarantees and if you simply buy and hold without a plan, it becomes pot luck. On what basis are these statements made? Certainly without any support from data as we shall see in this article. Yet we still see statements on social media that 10-12% return is “easily possible”. We have pointed out that no one can or no one should expect returns from mutual funds. “What return can I expect from a Nifty 50 SIP over the next 10 years?” This is a typical newbie question.
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