If you had invested 60% of your money in an equity mutual fund and 40% in a debt fund on any day between 1st January 2000 to 31st January 2008 and redeemed your holding after 10 years, you would have got
Maximum return of 32.43% CAGR - Investment date 12th April 2001
Minimum return of 8.9% CAGR - Investment date 4th January 2008
Great Indian Mutual Fund Tragedy
Even though mutual funds fell 60% in 2008 if you did not sell you made an 8.9% return. In addition to better returns than FD, PPF or tax free bonds, mutual funds have better liquidity and you can invest as little as Rs 100 per month. The opportunity loss in wealth creation since 2000 is 1.8 lacs per Rs 100 invested per month. For Rs 10000 per month the opportunity loss is Rs 1.8 crores.
Desh ki Taraaki Mein Hissedar
Many Indians rich and poor lost an opportunity to create wealth from 2000 to 2017.
In the next 17 years, from 2018 to 2035, they have an opportunity to prevent a repeat of the Great Indian Mutual Fund Tragedy.