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Comment by jacomoRodriguez | Hacker News Reader

so asking the big and obvious question: in what did yo invest?

I am based out of India 70% of my portfolio is in equity mutual funds, and the rest in safe instruments. The Indian stock markets have given good returns and my equity portfolio has been doing 17% CAGR (10% inflation-adjusted)

But I have planned for conservative returns of 12 percent overall

That seems like a very ambitious rate of return, given that India seems to have ~4% inflation rate.

Long term inflation rate has been 7 to 8 percent in india.

12% is not conservative

It is in India.

I apologize if this is a stupid question but why wouldn't everyone be investing in India with these returns being standard? In the US we would assume a conservative rate of 7%

When adjusted for usd returns might not be that great. Indian currency have been depreciating a lot against usd.

On the other hand my own portfolio has a mutual fund that invest in US stocks for more diversification.

The 12% returns are not adjusted for inflation or depreciation. Historically, India had a much higher rate of inflation than the US. And the rupee has continuously lost value against the dollar.

US 10 year treasury yields are ~4% while Indian treasury yields are ~7%.

40 year index return from Indian stock market have been around 15 percent without dividend reinvestment.

The long term inflation rate has been 7 to 8 percent and bonds have returned par with inflation rates

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