When considering such a goal, one must acknowledge that it would necessitate an annual return of approximately 58%. This is quite a high expectation, especially when you consider that the long-term annual return from the Indian stock market has been around 15%.
We must recognize that high returns often come with high risk. Doubling down on risky investments, like speculative stocks or high-risk derivatives, could potentially result in such returns, but they could also wipe out your investment entirely.
However, a more prudent approach would be to adjust your expectations to align with the reality of market returns. Aim for steady, sustainable growth that compounds over time. As Einstein famously remarked, “Compound interest is the eighth wonder of the world. He who understands it, earns it; he who doesn’t, pays it.”
Rather than chasing quick, high-risk returns, it might be wiser to adopt a more balanced and diversified approach to investing. This is where the ‘Roots and Wings’ philosophy that we follow at Jama Wealth comes in.
‘Roots’ signifies companies with solid fundamentals, and ‘Wings’ represents companies with consistent growth and market leadership. A portfolio created with this philosophy can aim for consistent returns while managing risk.
The approach might not help you turn 10 lakhs into 50 in 3 years (may take 7 yrs or longer), but it is a proven way to create significant wealth over a longer time frame. If you need assistance in this journey, consider partnering with Jama Wealth. Our expert investment advisory and tailored PMS services are here to guide you in creating wealth responsibly.
