POSTED BY October 4, 2010 9:56 pm COMMENTS (7)ON
I am still trying to understand the return from Mutual funds when compare against index value. When we say that in long term(say 20+ years) a disipline and systematic investment in good mutual fund gives better returns(say 12 to 15%). Does it mean sensex or NIFTY will also grow by that percentage ? So today, Sensex is around 20000. If we say 12%(CAGR) return a MF gives in long term(20+ years) then does it required sensex to grow. The value I calculated for sensex by calculator(provided on this site) is around 161000. It is possible for sensex to grow to such a large value?
Am I doing mistake while applying the theory of appreciation. Please help