Can you double your money in the next five years?

Unfortunately, no

The target is too ambitious. Even if you have an all-equity portfolio, it will need to generate a yearly return of 15%, which is unrealistic.

So, what should you do?

Depending on how reliant you will be on your investment to meet your post-retirement needs, create an asset allocation plan with the ideal combination of equity and debt.

What is the ideal asset allocation strategy?

An equity-debt allocation of 50:50 is considered suitable. However, do not invest in equities in one go. Rather, spread the money over 2-3 years.

How much can you earn from it?

Assuming returns of 6-7% from debt and 11-12% from equity, you can expect to earn annual returns of 11-12% on your portfolio.

By how much would your investment increase?

With these returns, your corpus would appreciate by 50-60% over the next five years, if not double it.

However…

Given the volatile nature of equity, your investments may fluctuate wildly during this period. Thus, we advise you to stay invested for longer (more than five years).

To learn more about how to frame the right investment strategy as per your needs,

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