Is a 10% return on a mutual fund good? (2024)

Is a 10% return on a mutual fund good?

Most investors would view an average annual rate of return of 10% or more as a good ROI for long-term investments in the stock market. However, keep in mind that this is an average. Some years will deliver lower returns -- perhaps even negative returns. Other years will generate significantly higher returns.

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What is a good return for a mutual fund?

Moreover, mutual funds are meant to be evaluated against a benchmark such as a broad index or other yardstick of value - so if the S&P 500 falls 3% in a year and a large-cap mutual fund only falls 2.5%, it can be considered a "good" return, relatively speaking.

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How much return should I expect from mutual funds?

Investing for high returns is what we all seek. Mutual funds are one such market-linked instruments that have outperformed the market expectations on several occasions. Equity mutual funds have outperformed bank deposits with returns as high as 11% to 18% over the last decade.

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What is an average return on a mutual fund?

The average annual return (AAR) is a percentage that represents a mutual fund's historical average return, usually stated over three-, five-, and 10 years. Before making a mutual fund investment, investors frequently review a mutual fund's average annual return as a way to measure the fund's long-term performance.

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Where should I invest to get a 10% return?

A low-cost S&P 500 index fund is the simplest way for most investors. Many online brokers have these funds with very low fees. If you want to earn 10% returns, this is one of the best ways to get started.

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What if I invest $10,000 in mutual funds for 5 years?

If a SIP of Rs 10,000 had been started in it 5 years ago, today this amount would have been Rs 12.72 lakh. The fund has given an annual return of 30.62 percent in these five years.

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What is a realistic return on investment?

According to conventional wisdom, an annual ROI of approximately 7% or greater is considered a good ROI for an investment in stocks. This is also about the average annual return of the S&P 500, accounting for inflation. Because this is an average, some years your return may be higher; some years they may be lower.

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Can mutual funds give 20 percent return?

In conclusion, there are several mutual funds in India that offer the potential for returns of up to 20 per cent.

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How long should you keep money in a mutual fund?

If you are actually looking at equity funds to help you achieve your long term goals then you at least need to give yourself a holding period of 8-10 years.

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What is the average 15 year return on mutual funds?

Average Mutual Fund Returns
Category2021 Return15-Year
U.S. Mid-Cap Stock23.40%8.73%
U.S. Small-Cap Stock24.19%8.50%
International Large-Cap Stock9.72%3.75%
5 more rows
Jan 22, 2022

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What will 10000 be worth in 20 years?

With that, you could expect your $10,000 investment to grow to $34,000 in 20 years.

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How do you know if a mutual fund is good?

  1. Identify Goals and Risk Tolerance.
  2. Style and Fund Type.
  3. Fees and Loads.
  4. Passive vs. Active Management.
  5. Evaluating Managers and Past Results.
  6. Size of the Fund.
  7. History Often Doesn't Repeat.
  8. Selecting What Really Matters.

Is a 10% return on a mutual fund good? (2024)

Which mutual fund has the highest return in last 10 years?

Aditya Birla Sun Life Corporate Bond-
NameDividend Yield 1 yearDividend Yield 10 years
SBI Magnum MidCap21.90%10.1%
Kotak Small Cap25.50%15.85%
HDFC Banking & PSU Debt Fund6.37%7.61%
Aditya Birla Sun Life Corporate Bond8.49%8.09%
2 more rows
Feb 22, 2023

How do I get a safe 10% return?

Where can I get 10 percent return on investment?
  1. Invest in stock for the long haul. ...
  2. Invest in stocks for the short term. ...
  3. Real estate. ...
  4. Investing in fine art. ...
  5. Starting your own business. ...
  6. Investing in wine. ...
  7. Peer-to-peer lending. ...
  8. Invest in REITs.

How can I get 10% interest?

How Do I Earn a 10% Rate of Return on Investment?
  1. Invest in Stocks for the Long-Term. ...
  2. Invest in Stocks for the Short-Term. ...
  3. Real Estate. ...
  4. Investing in Fine Art. ...
  5. Starting Your Own Business (Or Investing in Small Ones) ...
  6. Investing in Wine. ...
  7. Peer-to-Peer Lending. ...
  8. Invest in REITs.

What is the safest investment with highest return?

High-quality bonds and fixed-indexed annuities are often considered the safest investments with the highest returns. However, there are many different types of bond funds and annuities, each with risks and rewards. For example, government bonds are generally more stable than corporate bonds based on past performance.

What if I invest $100 a month for 10 years?

But by depositing an additional $100 each month into your savings account, you'd end up with $29,648 after 10 years, when compounded daily.

What if I invest $50,000 in mutual fund?

Considering 9% returns, an investment of Rs 50,000 can fetch you Rs 2,80,220 in fd in 20 years. Many people even ensure to use the FD Calculator to correctly estimate how much they can earn after a certain time period based on the ROI.

How much will I have if I invest $500 a month for 10 years?

If you invested $500 a month for 10 years and earned a 4% rate of return, you'd have $73,625 today. If you invested $500 a month for 10 years and earned a 6% rate of return, you'd have $81,940 today.

Is 20% return on investment good?

There is no set percentage. Some agencies might be satisfied with a 5-percent ROI, while others might be on the lookout for a higher number like 20 percent for it to be considered good ROI.

Where do millionaires keep their money?

The Bottom Line. Millionaires have many different investment philosophies. These can include investing in real estate, stock, commodities and hedge funds, among other types of financial investments. Generally, many seek to mitigate risk and therefore prefer diversified investment portfolios.

How much money do I need to invest to make $1000 a month?

Investment Required To Make $1,000 In Monthly Income

However, the exact investment required will vary for every investor. Therefore, your precise amount will depend on your specific investments and your return on those investments. Thus, the money required will range from $240,000 to $400,000.

Which mutual fund gives 12% return?

personal finance
Sectoral FundsOne-year returns (in %)
Tata Banking and Financial Services Fund – Reg Growth12.50
UTI Banking and Financial Services Fund – Growth12.00
Aditya Birla Sun Life Infrastructure Fund – Growth12.00
Source: SMC
9 more rows
Dec 6, 2022

Which mutual fund gives 15% return?

Synopsis
Scheme NameScheme returns (%)
HDFC Small Cap Fund15.0215.90
ICICI Prudential Technology Fund19.1218.30
Invesco India Contra Fund15.3416.03
Invesco India Midcap Fund15.1817.92
13 more rows
Mar 10, 2023

What is the 90% rule for mutual funds?

The 90/10 rule in investing is a comment made by Warren Buffett regarding asset allocation. The rule stipulates investing 90% of one's investment capital towards low-cost stock-based index funds and the remainder 10% to short-term government bonds.

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