Well as I said earlier…in FB posts and Twitter..10,000 is just a number and does not mean anything. Like age to an older person. When a person turns 28, 34, or 54…it is just a number. However it is customary to celebrate 25, 50, 60…no logic perhaps but maybe a time to introspect.

Well the journey from 1000 to 10,000 was made in 21 years and a straight calculation means you got about 11.2% return. This is good but not something very great, right?

Well to put it in context some of the active funds which were launched at that time have out performed the index by a mile inspite of the charges that they levied. Wait a minute. The fund got dividends too – which the index did not get.

If you look at the TRI – Total Return Index – you could safely add about 2- 3% – and you are likely to arrive at 13-14% kinda return.

That is not too bad. Remember If you use the TRI assuming that shares were bought with the dividends..in the same proportion (it is very difficult to mathematically do it outside the system)..the return may be still higher. Be as it may…assume you got 13.4% p.a. CAGR this number is about 60% more than PUBLIC PROVIDENT FUND.

THAT IS AN AWESOME RETURN, make no mistake. Even if you can start a SIP in an index fund TODAY and over the next 20/30/40 years..get 50% more than PPF you will CREATE AWESOME WEALTH for your family.

Make no mistake – 12-14% p.a. is not a joke. It is an awesome return for wealth creation over a long period of time.

Do not wear a Fool’s cap and blow paper trumpets on reaching 10000.

Understand that wealth gets created over very long periods of time with a small return (r), a big Amount and a dedicated guide.

Go, earn your billions.