Portfolio Gain-How much is normal/common?

rkp

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Hi all! I am from India and a beginner. I am getting interest in developing generic strategies which would get a decent return on investments. Not too greedy but not below average.

Its been few days i am scanning the web for an answer. I want to know how much of a portfolio gain would be called normal or decent profit. What if my gain is 20% when the sensex has done +15% that year? Is this performance normal? or would 40% make people call me talented?

I have read some articles on forbes.com. Some fund managers profiled there get around 33% :-0in US markets. I think the great Warren Buffet has averaged around 30%. I also saw the Indian mutual fund returns. They talk of returns in the range of 15% to 25%...one was 28%. And then i stumbled on these Virtual stock market games on the internet. The gains are just insane. The leader has 1000% and above(probably annual):eek:. And check this out....http://stockmania.tk/rank.php

And then there is T2W forums itself. One guy was showing his transaction statements. He had made $25k+ starting from around 700$ in the forex market......all in a month. Repeats it every month:-0

So if the markets are so profitable then these high performance guys would be billionaires soon (I understand that it is difficult to produce such gains as the fund size grows).

So tell me people, according to you what would be a decent portfolio gain in % terms? (for equity,commodities,forex)
 
The most likely outcome by far is that you will lose most, if not all of your account. Don't believe these guys that say they turned 500 into 5000 in a month, most of them are lying to try to sell you something. If you break even in your first year you'll have done well.



Hi all! I am from India and a beginner. I am getting interest in developing generic strategies which would get a decent return on investments. Not too greedy but not below average.

Its been few days i am scanning the web for an answer. I want to know how much of a portfolio gain would be called normal or decent profit. What if my gain is 20% when the sensex has done +15% that year? Is this performance normal? or would 40% make people call me talented?

I have read some articles on forbes.com. Some fund managers profiled there get around 33% :-0in US markets. I think the great Warren Buffet has averaged around 30%. I also saw the Indian mutual fund returns. They talk of returns in the range of 15% to 25%...one was 28%. And then i stumbled on these Virtual stock market games on the internet. The gains are just insane. The leader has 1000% and above(probably annual):eek:. And check this out....http://stockmania.tk/rank.php

And then there is T2W forums itself. One guy was showing his transaction statements. He had made $25k+ starting from around 700$ in the forex market......all in a month. Repeats it every month:-0

So if the markets are so profitable then these high performance guys would be billionaires soon (I understand that it is difficult to produce such gains as the fund size grows).

So tell me people, according to you what would be a decent portfolio gain in % terms? (for equity,commodities,forex)
 
So tell me people, according to you what would be a decent portfolio gain in % terms? (for equity,commodities,forex)

Some of the people you have quoted have done well because they are long term buy and hold investors. IMO: Rather than concern yourself with ‘decent’ which is mostly a subjective opinion, you should have a certain minimum you should be aiming for and as long as you achieve that you are doing well. What sort of minimum?

1)You should aim to outperform Inflation (in your country of residence) every year.
2)You should aim to outperform the return of ‘safer’ investments like High-grade Corporate Bonds or Government Bonds.

These serve as good benchmarks, especially inflation. There is no point getting excited over any gain if it is purely nominal.
 
@pboyles: Yes, better to learn the skills on our own.
@new_trader: I have set 30% (annual) as the goal. If i am skilled enough for that or not remains to be seen :)
 
@pboyles: Yes, better to learn the skills on our own.
@new_trader: I have set 30% (annual) as the goal. If i am skilled enough for that or not remains to be seen :)

Yes, I guessed you would pick an arbitrary number out of thin air and make that your goal for no reason other than you think it sounds impressive. I think 43.7865% is a much better goal, 30% is so 20th century.
 
I think 43.7865% is a much better goal, 30% is so 20th century.

I'm informed that 43.7865 was coincidentally the daily spot rate for the Vietnamese Dong to Pakistan Rupee on December 21, 2010 :LOL:

Which is perhaps a perfect example of people seeing patterns where non exit
 
Ok i would dump the goal! And would just try to profit from the current circumstances, what ever it offers.

Still 30% would be a confidence boost :)
 
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