What Can You Really Expect from Mutual Fund Returns? Dhirendra Kumar Explains | Value Research

In this eye-opening episode of Investors' Hangout, Dhirendra Kumar uncovers the reality behind expecting 20-25% annual returns from mutual funds. Are such high returns realistic, or just a myth? Learn about the volatile nature of equity markets, how market cycles affect returns, and why long-term investment discipline is essential for steady wealth creation. Discover why managing your expectations and understanding market behaviour can protect your investments and help you build a successful portfolio over time. Watch now to get practical insights on how to approach mutual funds and set realistic financial goals. Timestamps: 00:05 Introduction 00:40 Is it realistic to expect over 25% annualised returns from mutual funds? 03:08 Some fund categories have delivered high returns over the last 3–4 years—can such performance be sustained? 05:49 If concentration can lead to higher returns, why is diversification always called the only free lunch? 07:08 What risks and trade-offs should be considered when expecting high returns? 09:25 If high returns aren’t guaranteed, what would be a realistic expectation from equity investments? 11:55 Viewer's Question 13:56 Closing 14:12 Key Takeaways: - Set realistic return expectations: Don’t chase 25% annual returns—equity markets don’t deliver like fixed deposits. Focus on long-term growth aligned with economic fundamentals. - Stay invested through full cycles: High returns come with deep drawdowns. Investors must endure volatility and resist the urge to exit during market falls. - Your behaviour shapes your outcome: Discipline, patience, and emotional resilience matter more than timing or selection. Long-term investing is a test of temperament. - Understand the risk-return trade-off: Concentrated or sector-specific funds can deliver exceptional returns but also carry higher volatility and risk of sharp declines. Diversification helps manage this risk. - Anchor expectations to reality: Aim for 1.25x to 2x of the risk-free return, depending on your asset mix and risk appetite. Modest goals lead to better long-term satisfaction. 🍁 𝗔𝗯𝗼𝘂𝘁 𝗩𝗮𝗹𝘂𝗲 𝗥𝗲𝘀𝗲𝗮𝗿𝗰𝗵 🍁 Welcome to Value Research, your go-to source for insightful investment guidance and financial planning. With over three decades of experience, we empower savers to make informed decisions through independent research, fund ratings, stock analyses, and mutual fund insights. Trusted by individual investors and industry leaders alike, our channel provides expert answers to common queries about mutual funds, stocks, tax-saving strategies, and more. Join us for in-depth analyses, practical advice, and top-tier investment recommendations to achieve your financial goals and secure your financial freedom. ✨ 𝗝𝗼𝗶𝗻 𝗩𝗮𝗹𝘂𝗲 𝗥𝗲𝘀𝗲𝗮𝗿𝗰𝗵 ✨ https://www.youtube.com/channel/UCcYn9RpMAuYtO_uzGgtZJUQ 👉Subscribe to our हिंदी YouTube channel, Value Research Hindi -https://www.youtube.com/@UC-gbztXlCNUIrHDf-DIdhpg 👉Subscribe to our newsletter 📃: https://bit.ly/3GW0HGe 📩 👉Subscribe to our YouTube channel: https://www.youtube.com/@valueresearchvideo 🔔 👉Subscribe to our monthly magazines 🔖: https://bit.ly/3DWgAdS 👉 Investors' Hangout: https://www.youtube.com/playlist?list=PLlcvGUYyh9LtmnHM8EcEZB8apc3UoJIF9 👉 Fund Focus: https://www.youtube.com/playlist?list=PLlcvGUYyh9LtZxTLZgz2oGohI-xK9YNKR 👉 ABCD of ETFs: https://www.youtube.com/playlist?list=PLlcvGUYyh9Lul96-Aq3H9xscENk8cAw4L 👉 Investment Acorns: https://www.youtube.com/playlist?list=PLlcvGUYyh9Lspeu4zeadrhwM8DeJ1S2wV Do you have an investment-related question? ➡️Post it on our 'Ask Value Research' page -- https://vro.in/askvr. You can use our Premium service https://vro.in/prem/ for exclusive analysis, guidance, and customised recommendations. If you are a beginner wondering how to invest in stocks or an experienced investor looking for a new source of investment ideas, visit Value Research Stock Advisor at https://www.valueresearchstocks.com/. It has everything you need to know about stocks. 🌐 𝗙𝗼𝗹𝗹𝗼𝘄 𝗨𝘀 𝗢𝗻 𝗢𝘁𝗵𝗲𝗿 𝘀𝗼𝗰𝗶𝗮𝗹 𝗠𝗲𝗱𝗶𝗮 📢: ➤ Website: https://www.valueresearchonline.com ➤ X: https://x.com/ValueResearch ➤ Facebook: https://www.facebook.com/ValueResearch ➤ Instagram: https://www.instagram.com/valueresearch/ ➤ Spotify: https://open.spotify.com/show/5da8Mxc4mCkZljThKy8J7H #investmentstrategy #stockmarkettips #mutualfunds #LongTermInvesting #HighReturns #financialdiscipline #valueresearch #investorshangout #dhirendrakumar #investoreducation #equityinvesting #25PercentReturns #InvestmentTruth #stockmarkettips #wealthbuilding Thanks for Watching - What Can You Really Expect from Mutual Fund Returns? Dhirendra Kumar Explains | Value Research