A reasonable return on 150K

ias76

If a lump sum of 150K was invested over a period of 20 years, what would be a reasonable return to expect? 6% per annum net ?

I appreciate anything outside of bank account has a level of risk but would like something with a relatively low risk but reasonable return over the long term.

Thoughts?

EdInvestor

The usual calculation involves GDP growth (say 2.5-3% lately) plus dividend yield (3-3.5%) plus inflation (2.5-3%) minus charges.Of course all these figures are recent - they have been rather higher in the past 20 years.

Charges are often more than 2% when you add in the hidden ones, so it makes quite a big difference if you invest direct. So does compounding - at a 7% net return you will double your money over 10 years.