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Can I expect a 15 per cent return from my investments?

Returns from equity is a function of inflation and interest rates, says Dhirendra Kumar

Returns from equity is a function of inflation and interest rates, says Dhirendra Kumar

I have Rs 60,000 each invested in large-, mid-, and small-cap funds for the last five years and still, my goal is 10 years away. Can I expect a return of 15 per cent at the end?
- Rajan Bhatt

I don't know about 15 per cent returns, but I think it will be a very satisfying experience if you are investing with a time horizon of 15 years and your investment is spread across large-, mid-, and small-cap funds. Returns from equity is a function of inflation and interest rates. If those are coming down dramatically, then 12 per cent returns could also be high. So, it will be satisfying if you are reasonably diversified and Indian economy is going to do better for which, I am very confident.

This article was originally published on July 06, 2020.

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