How much return from Equity Market one should expect?

The bank fixed deposit rates are around 6% p.a.

If an Industrialist or a businessman goes to bank for loan, he is charged interest @ 9% p.a. to 10% p.a.

When the loan is available at Say, 10% p.a., a businessman would avail it only if he sees opportunity to earn after paying interest to bank on the loans. He would expect profit of at least 3% to 5% after interest payment to bank.

By making investment into equity market, an investor becomes partner to this Industrialist or Businessman and he should expect returns in these lines only.

Ideally it comes to around 15% p.a.

Any attempt to earn more than reasonable returns is a High Risk Game.

Leave a Reply

Your email address will not be published. Required fields are marked *