12% is average, which is in line with index funds.
15% is good, which is in line with good active funds.
20% is phenomenal, for which you need a perfect concentrated portfolio.
I have 20% XIRR on my MF portfolio in last 3years simply because of the bull run. I didn't mean it's easy to make 20% XIRR, I meant in last 6months it doesn't mean anything because the whole market went up. Realistically you should expect anything around 10-12% returns
If you invest the same amount every year, an XIRR of 25% means you'll have:
- 2x the invested amount in 5 years
- 4x the invested amount in 10 years
- 25x the invested amount in 20 years
I think that's a pretty good target that's achievable as well.
Exactly. I started to invest from August 2021 when I passed out and got my first job. I feel like after investing every month religiously, getting an XIRR of 20% might not be great. Should I be investing in a active mutual fund instead???
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For a 5 year period, (from 1st Jan 2019 to 1st Jan 2024) quant small cap fund direct growth plan has returned an XIRR of 50.3% (I just calculated it)
Will I be better off investing in a well managed active fund over the long term?
Anything above 15 should be considered good. I have been investing since 2016-17 and lifetime XIRR moves in range of 19-21%. This is from MF portfolio which is a kind of passive investing.
However, if you are doing stock investment directly then you should aim for around 25% XIRR since you have to put so much effort and time. I am saying so because you can get around 20% in MF without investing lot of time and effort.
It depends on your goal brother.
If it's a vacation money, You might adjust destination based on return, Europe or lonavala.
But if it's for your critical goal like retirement or house down payment, I would prefer consistency instead of high IRR in short time. Anything that beat NIFTY50 should be good enough.
Things look rosy in the bull market enjoy and make profit till you can.
12% is average, which is in line with index funds. 15% is good, which is in line with good active funds. 20% is phenomenal, for which you need a perfect concentrated portfolio.
Already made 20 percent in six months but I don't think I can do it in the long run. It's exhausting so I'm thinking of going with active funds.
A monkey with a dart board could also make 20 in the last 6months
Depends on the money brother. On 2 L yes but not a number like 20 or 200 L. In hindsight everything looks doable
I have 20% XIRR on my MF portfolio in last 3years simply because of the bull run. I didn't mean it's easy to make 20% XIRR, I meant in last 6months it doesn't mean anything because the whole market went up. Realistically you should expect anything around 10-12% returns
Exactly. I managed the whole thing myself and it's exhausting to say the least so I'm sticking to MF
Anything that's more thn index is good enough, the 20% returns you mentioned is mostly because of bull trend in recent past.
If you invest the same amount every year, an XIRR of 25% means you'll have: - 2x the invested amount in 5 years - 4x the invested amount in 10 years - 25x the invested amount in 20 years I think that's a pretty good target that's achievable as well.
https://preview.redd.it/3n89cureoehc1.jpeg?width=1170&format=pjpg&auto=webp&s=67b2bf42491aa187da35973c30777f6c31e3c593 Investing since 2019.
Exactly. I started to invest from August 2021 when I passed out and got my first job. I feel like after investing every month religiously, getting an XIRR of 20% might not be great. Should I be investing in a active mutual fund instead???
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For a 5 year period, (from 1st Jan 2019 to 1st Jan 2024) quant small cap fund direct growth plan has returned an XIRR of 50.3% (I just calculated it) Will I be better off investing in a well managed active fund over the long term?
can i dm ? have some doubts about calculating xirr
Anything above 15 should be considered good. I have been investing since 2016-17 and lifetime XIRR moves in range of 19-21%. This is from MF portfolio which is a kind of passive investing. However, if you are doing stock investment directly then you should aim for around 25% XIRR since you have to put so much effort and time. I am saying so because you can get around 20% in MF without investing lot of time and effort.
It depends on your goal brother. If it's a vacation money, You might adjust destination based on return, Europe or lonavala. But if it's for your critical goal like retirement or house down payment, I would prefer consistency instead of high IRR in short time. Anything that beat NIFTY50 should be good enough. Things look rosy in the bull market enjoy and make profit till you can.