- A Fixed SIP of Rs 10,000 every month (= Rs 3.24 Crores)
- An Increasing SIP, Starting with Rs 10,000 every month & 10% Annual Increase (= Rs 8.40 Crores)
- A Fixed SIP of Rs 26,000 every month (= Rs 8.40 Crores)
In all the above scenarios, the assumption for annual returns was 12%. Now this number, according to me is quite conservative because of the following points:
- In last (almost) 2 decades, Indian markets have given higher returns (in excess of 15%).
- Well diversified, actively managed mutual funds have delivered returns of more than 18% for almost a decade.
- If risk-free instruments like NSC, PPF give close to 9% return, then there is no point going for equities as an investment class if expectations are less than 10%
- Indian Growth Story is still intact. And till the time India becomes a developed economy, it will continue to grow at a reasonable pace. My guess is that India is still 25-30 years away from becoming a mature and (real) developed economy – in terms of quality of life, industrial might and similar things.