15% annual returns is realistic? (2024)

FAQs

Is 15% annual return realistic? ›

It is not worth your time to do any investment if it cannot bring you 12 to 15 percent per year. Investing properly is not a gamble. We should not lose money in the stock market on a long term basis. In fact, a near guaranteed return of 15% or higher is a realistic expectation.

Earning a consistent return of 12-15 percent on your investments is a challenging goal, and it's important to understand that such high returns typically come with a higher level of risk. There are no guarantees in investing, and you should be prepared for the possibility of losing money.

The average stock market return is about 10% per year, as measured by the S&P 500 index, but that 10% average rate is reduced by inflation. Investors can expect to lose purchasing power of 2% to 3% every year due to inflation. » Learn about purchasing power with the inflation calculator.

To calculate the average rate of return, add together the rate of return for the years of your investment, and then, divide that total number by the number of years you added together.

if you want 15% return then the risk is gonna be even more. The idea of a risk-free investment yielding such high returns contradicts the fundamental principle of investing: higher potential returns usually come with higher risk.

Stock exchange markets are considered inherently unstable and unpredictable, however, in the long run, they eventually tend to rise, and though a return as good as 15% each year might not always be achievable in the stock market, an annual return of around 15% may be possible over the foreseeable future, but remember, ...

• A good return on investment is generally considered to be around 7% per year, based on the average historic return of the S&P 500 index, adjusted for inflation. • The average return of the U.S. stock market is around 10% per year, adjusted for inflation, dating back to the late 1920s.

The rule says to achieve the goal of earning Rs 1 crore, an investor should invest Rs 15,000 monthly through SIP for 15 years, considering a 15% annual return from an equity fund. Consistent adherence to this strategy can lead to significant wealth accumulation.

What is the 15x15x15 rule in mutual funds? The mutual fund 15x15x15 rule simply put means invest INR 15000 every month for 15 years in a stock that can offer an interest rate of 15% on an annual basis, then your investment will amount to INR 1,00,26,601/- after 15 years.

Usually the implication is that they can expect, over a long time, a 10% return. Fortunately some ask, with some doubt, "Is a 10% return really reasonable?" It is not. While the average growth or return in the market (e.g., the S&P 500) is about 10%*, investors over time do not see that.

What is the safest investment with the highest return? ›

While quite a few personal finance pundits have suggested that a stock investor can expect a 12% annual return, when you incorporate the impact of volatility and inflation, 7% is a more accurate historical estimate for an aggressive investor (someone primarily invested in stocks), and 5% would be more appropriate for ...

Over the past decade, you would have done even better, as the S&P 500 posted an average annual return of a whopping 12.68%. Here's how much your account balance would be now if you were invested over the past 10 years: $1,000 would grow to $3,300. $5,000 would grow to $16,498.

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.

Average Rate of Return: This is more difficult to calculate because by their nature private equity firms and hedge don't always report their losses and earnings. However, most estimates suggest that you can expect average returns of up to 14%.

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.

Usually the implication is that they can expect, over a long time, a 10% return. Fortunately some ask, with some doubt, "Is a 10% return really reasonable?" It is not. While the average growth or return in the market (e.g., the S&P 500) is about 10%*, investors over time do not see that.

That often cited 10-per-cent return for stocks based on the post-1950 period is roughly equivalent to a 7-per-cent real return in the historical data. That is about 2 per cent higher than unbiased estimates of U.S. expected returns, U.S. equity returns before 1950 and global stock returns spanning 1890 through 2023.

So in a nutshell, my opinion is that you would be fortunate to average around 7-8% rate of return over a long-term basis. There will be periods in which you get a 20% rate of return. These are the great times. But there will also be times in which you are getting a -15% rate of return.