Returns of Equities vs Debt

Importance of Equities

♨️Equity has always been known as wealth creators but at the same time are wealth destructors too.

♨️Normally the earning life of people is 25-60. i.e 35 years.

♨️Now Debt Investments like FDs, Debt MFs, bonds etc give you a return between 5-8% depending on the tax bracket you are in.

♨️The sensex which is the benchmark of the top 30 companies in India has delivered a double digit return of 12% annually. A majority of Equity funds have beaten it with a return of 15% on an average.

♨️That means in your earning lifetime i.e 35 years, if you invest your money in Fixed Income it will double your principal every 12 yrs.

✔Which is To say :

25yrs – you invest Rs. 1
37yrs – It becomes 2
49yrs – It becomes 4
61yrs – It becomes 8 and you Retire.

✔Now What Equities would Do To Your Investment :

25yrs – you invest Rs.1
30yrs – It becomes 2
35yrs – It becomes 4
40yrs – It becomes 8
45yrs – It becomes 16
50yrs – It becomes 32
55yrs – It becomes 64
60yrs – It becomes 128

which is 16 Times Greater Than 8.
Considering a worst case scenario, you will still settle far above 8.

✔What is is risk?

Interim volatility OR Retiring with a kitty 15 times less?


Start your wealth journey As Early As You Can……🔜🔜🔜🔜

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