Investor Returns vs Investment Returns

Let’s start with some numbers:

• HDFC Bank made a high of ₹29.5 in the year 2000. On 15th April 2025, it closed at ₹1864.9 — an annualized return of 18% over 25 years.

• Infosys was trading at ₹12.15 in 1998. As of yesterday, it closed at ₹1426 — delivering a CAGR of 19.45%.

• The popular mutual fund, Reliance Growth Fund (now Nippon India Growth Fund), grew from a NAV of ₹11.18 in 1996 to ₹3718 as of yesterday. That’s a remarkable 22.32% annualized return over nearly three decades.

On paper, these numbers look impressive. But here’s where things get interesting…

Many people glance at an 18% return and say, “That’s okay… not too high.”

But think about this — at an 18% annualized return, your money doubles every 4 years. That means:

An investment of just ₹1 lakh 25 years ago would have grown to ₹62.67 lakh today.

That’s a 62x growth — without switching funds, timing the market, or chasing fads.

So, let me ask you this:

Do you know anyone who has actually made these returns by holding these exact investments from the beginning?

The answer is — very few.

And this brings us to a fundamental truth in investing:

Why the gap? Who’s to blame?

Was it the fault of Infosys or Reliance Growth Fund that investors didn’t stay the course?

Absolutely not.

The investments did their job. They showed up, performed consistently, rode through volatility, and delivered. But the investors didn’t.

Why? Because:

• They booked profits too early, afraid of losing gains.

• They exited during market crashes, unable to stomach short-term volatility.

• They chased newer trends, believing the grass is greener elsewhere.

• They lacked a plan — and when you don’t know where you’re going, any detour looks tempting.

This is why investor behavior is the real differentiator — not the performance of the fund, stock, or scheme.

Here’s the practical wisdom:

The stock or fund didn’t fail the investor. The investor failed to stay invested.

If you want to create wealth — real, multi-decade wealth — stop chasing returns and start building discipline. The market rewards those who endure, not those who hop.

Now, you might feel that I’ve been selective — picking specific stocks like HDFC Bank and Infosys, or a successful mutual fund like Reliance Growth Fund — just to prove a point. You’re absolutely right to think so.

There are plenty of examples where stocks or schemes underperformed, or worse, wiped out capital entirely. That’s the nature of investing. Risk and return go hand in hand. Every worthwhile investment carries an element of risk — that’s the trade-off.

And this is exactly where a knowledgeable and trustworthy advisor plays a vital role.

A good advisor:

Think of it like this:

You wouldn’t take antibiotics just because you’ve heard of them.
You’d see a doctor — because your health is too important to gamble with.

Your financial health deserves the same level of care.

So if investing isn’t your area of expertise — or if you’d rather focus on your core profession, bringing an advisor on board is not just smart — it’s ideal.