[ringofchaos]

Would living on investment income be considered as self employed. I quit my management job of Tech department of my company.

Saved enough money to generate 80 percent of my last drawn salary from my investments.

Now focusing on creating my own fintech web app, with generative ai integration.

I like the feeling of working independently and years of corporate job had taken taken toll on mental health.

Currently building skills in fullstack web development and generative ai. Would take freelance job for some extra cash

[jacomoRodriguez]

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

[ringofchaos]

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

[WXLCKNO]

12% is not conservative

[ringofchaos]

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

[unmole]

It is in India.

[smiths1999]

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%

[unmole]

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%.

[ringofchaos]

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.

[tcbawo]

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

[ringofchaos]

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