uTrade AlgosThere’s no single “good” CAGR percentage for India, as it heavily depends on the asset classes within your portfolio. Here’s a more detailed explanation:
Factors Influencing “Good” CAGR in India:
1. Asset Class:
- Equity: Investors often aim to match or exceed benchmark indices like the Nifty 50 or Sensex, which historically have provided average annual returns in the range of 10–15% over long periods, but with significant volatility.
- Debt: Debt instruments like bonds or fixed deposits typically offer lower CAGRs, often in the range of 6–8%, but with lower risk.
- Real Estate: Real estate returns can vary widely depending on location and market conditions.
- Mutual Funds: Mutual fund CAGRs depend on the fund’s strategy and asset allocation.
2. Risk Tolerance: Investors with higher risk tolerance may seek higher CAGRs through equity investments, while those with lower risk tolerance may prefer lower but more stable returns from debt instruments.
3. Investment Horizon: Long-term investors can afford to take on more risk and aim for higher CAGRs, while short-term investors may prioritise capital preservation.
4. Market Conditions: Economic conditions, interest rates, and market sentiment can significantly impact investment returns.
Equity Portfolio Aspirations:
- For pure equity portfolios in India, many investors aim to at least match or slightly outperform the major market indices. This is a common benchmark for evaluating equity investment performance.
Share India empowers investors by providing essential tools for performance tracking, enabling them to monitor their portfolio’s CAGR and compare it against relevant benchmarks. Access to real-time market information on the platform facilitates informed decision-making, which can lead to improved CAGR. Furthermore, Share India’s analytical capabilities allow users to scrutinise their portfolio’s performance, identifying successful strategies and areas needing adjustment, ultimately aiding in optimising investment outcomes.
In conclusion, a “good” CAGR in India is relative and depends on individual circumstances. However, for equity portfolios, aiming to match or exceed index returns is a common goal.
You can find Share India’s CAGR Calculator here:
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If you have any questions or need further support, don’t hesitate to contact Share India’s support team. You can reach us at 18002030303 or email us at support@shareindia.com.