Are you looking for a Mutual Fund Reckoner? Then, you have come to the right place. I have my 25-year-old reckoned available for your review.
As an active stock mutual fund investor for the past seventeen years, I have earned approx. 14.3% annual return on my money. (This is my profile)
Personally, to see money compounding 14% every year is magical!
What’s worked :
It has taken me a lot of discipline & adherence to principles to manage this.
I am sure others have done better, but I am happy & satisfied.
Over the years, I’ve seen many people making terrible investment mistakes such as: getting misinformed into doing ‘trading’, (or thinking they are smarter than the market); buying horrific investments like Insurance policies (for investments) and worst of all investing in “FDs”. (I call Fixed Deposits the worst because they neither protect you from inflation (given their poor interest rates) nor do they deliver tax-free returns).
While I respect the choice people make, I think it is prudent to share what investments I made to help anyone interested. If it’s worked for me, why not make to work for you?
The most important rules:
These are the most IMPORTANT, CRITICAL and ESSENTIAL PRINCIPLES to keep in mind before you review my sheet: (Hold your hand to your heart & swear “I will not break these rules” That was a joke 🙂
- Please INVEST & WAIT FOR MIN of 10 (TEN) YEARS. If you have shorter-term goals, DO NOT open this sheet.
- COME WHAT MAY, do not ‘flip’ or ‘churn’ your investments until something disastrous happens. That will only result in colossal losses. Every time I have seen this happen, it has only ended in disaster.
- Stay satisfied and control your greed.
- Check the BENCHMARKS in the sheet. In my humble opinion, if you beat the benchmarks, you are good. Why get greedy and try and beat the benchmarks if you are not a professional investor or stock picker?
- Beyond a point, it may become very taxing to invest in different mutual funds and track them and worry about your over or underexposure in certain funds. You can then switch to buying Index Mutual Funds. (If you doubt this logic, read about the legendary bet Warren Buffett laid out ten years ago on Index investing (vs Hedge Funds) and his general advise on investing here. It is a classic tale).
My Mutual Fund Reckoner of the past twenty-five (25) years: Click to access
How can you use this reckoner?
Review the mutual funds, their tenor and their returns. You will realise that as the periods get longer, the % returns start averaging to be more or less the same (all top mutual funds eventually yield the same results). This can make you feel a bit more assured about not bothering too much about picking the ‘perfect’ funds.
Good luck and be blessed with good fortunes!
If you have any doubts, please mail me at firstname.lastname@example.org
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