Your goal is to grow your current investment of Rs. 2 crore to Rs. 30 crore in 20 years, a 15x increase in your capital. This is indeed doable; let’s break down the potential approaches.
Firstly, the expected return from your investment: To achieve this target, you would need a compounded annual growth rate (CAGR) of roughly 13.35%. It’s important to bear in mind that achieving this return consistently over a span of 20 years is a challenging task, especially considering the unpredictability and volatility of the financial markets.
Secondly, the potential investment avenues: If you’re aiming for a CAGR of 13.35%, you might need to take a more aggressive approach in your investment strategy. This could mean allocating a significant portion of your portfolio to equity. Here are a few options:
- Equity Mutual Funds: Well-performing equity mutual funds have historically given returns above 12-15% over a long period (10+ years). You can divide your investments across large-cap, mid-cap, and small-cap funds according to your risk appetite.
- Direct Equity Investment: Investing in a well-diversified portfolio of stocks can potentially give higher returns, provided you have good knowledge about the stock market and are comfortable with the associated risks.
- Portfolio Management Services (PMS): These are aimed at high net worth individuals with a min ticket size of Rs 50 lakhs and can potentially offer higher returns.
Remember, all these investments are subject to market risks and require regular monitoring and rebalancing. Given the large size of your portfolio and the complexity of managing such a diverse range of assets, I would highly recommend engaging the services of a SEBI registered Investment Advisor or a SEBI Regd PMS. They can provide personalized advice based on your risk profile, financial goals, and investment horizon.
To conclude, while your goal is ambitious, it’s not impossible. However, it will require an aggressive approach, careful planning, and regular monitoring. So, dive in, but with an eye for detail, and remember that it’s the gradual, consistent investments that help build substantial wealth over time.
