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 28th February 2008 and redeemed your holding after 10 years, you would have got
Maximum return of 33.37% CAGR - Investment date 13th April 2001
Minimum return of 9.46% CAGR - Investment date 14th December 2007
Great Indian Mutual Fund Tragedy
Even though mutual funds fell 60% in 2008 if you did not sell you made an 9.46% 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 a wealth. From 2018 to 2036, they have an opportunity to prevent a repeat of the tragedy from 2000 to 2018 by using mutual funds.