Is 100% profit after 10 years in mutual fund possible if I invest today?
So my father invested 1 lakh in 2011 in canara robeco and in 2025 the total return is 3.5 lakh. I know nothing about mutual funds. When i heard this return from mutual fund I was so dumbfounded. I think it was one time investment. I can also understand that staying invested during Covid time has helped this increase.
Now I want to know if I invest the same 1 lakh today is it realistic for me to expect similar type of returns in 10 years time?
Your dad's money gre at below average returns.
Ideal and safe return is 100% return in 6 years. This comes to 12% per annum.
There's a rule called rule of 72. Divide 72 by %expected, and you'll get the number of years it takes to double.
For example, at 8% rate (FD), money will double at 72/8 = 9 years at 12% rate(MFs), money will double at 72/12 = 6 years at 18% rate, money will double at 72/18 = 4 years
With this logic, 1L in MFs should have doubled to 2L by 2017. That 2L should have doubled to 4L by 2023. and by 2025, it should be somewhere around 5L. But it's only 3.5L which is sub par.
If you invest in an index fund, you can easily beat this.
Hope this helps.
Which scheme did he invest.
Not all schemes have the same underlying.
First please read up about types and subtypes of MFs.
Then see past returns and rolling returns.
Then calculate if money invested will compound in a similar way, and what will be the end result.
Idk full details but it is some ELSS fund
Seems about right.
