Stocks 1 lac to 3.5 Crores in 10 years. Is it possible?

Stocks : 1 lac to 3.5 Crores in 10 years. Is it possible?

Posted by Anand Kumar on 30 December 2009
Last update on 1/18/2010 12:00:00 AM. Total replies 2

Unrealistic expectations from investors and impossible to acheivable promises made by advisors are making the life of small investors a misery in stock markets

Whenever I meet people or talk to them about investing in stocks I realise that they are chasing a oasis.

Ask yourself "How much monthly returns I want from markets?"

Then check the table below which shows at that monthly compunding rate how much your Rs. 1 lac will be after 10 years.

You will now tell me that your expectations were high.

Cool down. Set realistic targets and invest accordingly.

Return per month -->> Amount after 10 years

1% -->> Rs. 3.3 lacs

2% -->> Rs. 10.75 lacs

3% -->> Rs. 34.7 lacs

4% -->> Rs. 110 lacs

5% -->> Rs. 3.5 Crores

10% -->> Rs. 927 Crores

20% -->> Rs. 32000000 Crores

But I see advertisements promising 30% per month etc. Do they really understand what is 30% ?

A person who do not know maths is a dangerous advisor. Do not fall prey.

I too come across many investors who ask if our paid services can generate 5-10% per month?

Do you expect me to say yes?

This is the reason I recommend booking profits on many stocks at 10-15% raises even though they are very good long term bets. In most of the cases they fall back again. Else one will see a stock trading at Rs. 100 reach Rs. 11000 in 10 years at 4% a month. How many examples we have like this in history?

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Posted by Anand Kumar on 18 January 2010

ICICI Direct sends me a mailer (advisory) to buy a share trading at 178 for a target of Rs. 180.

Guess who is making money?

No service fees, FREE of cost.

Who is the winner? ICICI Direct with a brokerage of 3 rupees wether you make money or not.