An investor holding Rs 5000 in equity and Rs 95,000 in debt (assuming 15 per cent and 7.5 per cent compounded annualized returns respectively) will end up with a corpus of Rs 4.85 lakh in twenty years. If, on the other hand, the equity component was 75 per cent (i.e. Rs 75,000 in equity and Rs 25,000 in debt) the same investor would have a corpus of Rs 13.3 lakh in twenty years!
