The chances of getting more than 14% annualised returns from equity SIP is nearly 50% in 10 years, shows a research report published in PMSKart newsletter.
This is yet another research that substantiates the claim ‘Mutual funds sahi hai’. Last year, a report by CRISIL and AMFI showed that the chances of getting negative returns from investments in mutual funds through SIP route diminishes to nil from fifth year onwards.
Further, this research shows that there is more than 70% probability that an investor will get more than 12% return from equity SIP. The odds keep improving as investors lower their return expectations. For instance, chances of getting more than 10% returns is nearly 95% in 10 years and close to 100% odds of getting more than 8% return in 10 years.
Krushi Parekh, Senior Research Analyst, MultiAct Equity Consultancy first published these findings in PMSKart newsletter. The research takes into account growth option of MF schemes and is based on available data since July 1999.
