When I search for SIP Mutual fund plans, often I see huge money returns in the long run.
But when I research, it's usually mentioned as Power of compounding, that's how they're able to return such a hefty amount.
Their only condition is 40 years of period and 100000 Rupees(1 lakh) per month and 11.5% returns is attainable. I guess, because there are so many plans which offer more than that anyways.
Can someone help me understand if it's practical to expect near a 1000000000 Rupees (100 crore) as total returns?
Inflation rate in my country is 7.5 then Is it right to subtract the inflation rate in returns rate (11.5) and whatever the amount that I'm getting now.. and whatever things I can buy right now with that amount is what I'd be able to buy after 40 years ? would that be right assumption to make ?