Assuming you cruise…
…cost-free in the markets now…,
…how big exactly is your win?
Have you stopped to ponder over this fundamental point.
Let’s go over it together.
The question you need to be asking is, …
… “What will happen to my cost-free-ness from this point onwards?”
Well, what’s going to happen solely depends upon your behaviour.
We’ll just study a best-case scenario.
Let’s assume you leave your hard-earned cost-free-ness be, in the markets, for the next 25 years.
What would become of it?
First-up, let’s understand the very nature of your cost-free-ness.
It urges you to hold onto itself, forever.
The fact that you can’t let go of it despite such highs speaks of it as being the essence of your struggle, in terms of quality, if you know what I mean.
High quality material would typically compound at 15% per annum, over the long run, adjusted for inflation.
The figure of 15% per annum compounded, adjusted for inflation, is very achievable for your high-quality material – let’s put it like that – in a market like India’s.
Let’s do the math.
1 * (1.15) ^ 25 = 32.91
There you have it.
Your cost-free portfolio is slated to increase almost 33-fold in the 25 years to come.
That’s 3300% in 25 years when seen as pure appreciation, making 132% per year simple appreciation (not compounded).
That’s how big your win is.
Yes, staying invested with your cost-free-ness will make your cost-free-ness typically burgeon almost 33-fold over the next 25 years.