Equities are for the long term…
Post Inflation (which is saying Real returns) in the US market was a NEGATIVE 3.4% P.A. from the period 2000-9.
Is this the first time that it is happened? No. 3rd time since 1820….
Moral of the story?
when you meet an adviser ask him…NOW WHAT……you told me 1 year is long term…even in 10 years if I do not make money WITHOUT YOUR CHARGES.
Now add 2.5% amc charges (2.75% if some IF some speculation is to be believed)…now add the compounding effect of this…God, he would have to be sitting on nice 7% losses…
lol….
Nikesh
Little bit mistake here! Add 2.5% P.A. and it makes 25% loss for 10 years + 3.5% loss = 28.5%!!!!!!!!!!!!
subra
sorry mistake, but it is not 2.5*10, it will be much much more. Compounding for 10 years…so he would have lost about 40% of this portfolio..or thereabouts depending on the yearly loss..and was the loss front ended or back ended..
SK
Nice caption! Subra sir.
Suhas Zore
Something new happening ….
Changes in caption….
You have become “WE”
:)enjoy
subra
‘We’ just sounds less pompous that is all. No +ion to the team, in a recession, I cannot double my head count, even a ‘not well managed’ company like Infosys can do that.