The compound annual returns from equity mutual fund (MF) schemes which invest in large-cap companies are often considered safest bets for investors. However, these have dipped to single digit in the past 10-year investment period.
Tepid returns over such a long time frame belie the investment belief that equities make good returns from a long-term perspective. As on Wednesday, the category average return of large-cap schemes was 9.24 per cent. Essentially, the current value of Rs 100 invested 10 years ago would be Rs 242. Adjust for inflation and the return might be negative.
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