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Compounding Check File

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7 views

Compounding Check File

Uploaded by

prabhaskaran541
Copyright
© © All Rights Reserved
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Return CAGR 15%

Incremental Investment 10%


Initial & incremantal investmwent Highlighted in Red
Year 0 Year 1
Year 2024 2025
0 300,000 345,000
1 330,000
2
3
4
5
6
7
8
9

302,024 677,025
Return CAGR 20%
Incremental Investment 10%
Year 2024 2025
0 232,000 278,400
1 255,200
2
3
4
5
6
7
8
9
Update manually

Year 2 Year 3 Year 4 Year 5 Year 6 Year 7


2026 2027 2028 2029 2030 2031
396,750 456,263 524,702 603,407 693,918 798,006
379,500 436,425 501,889 577,172 663,748 763,310
363,000 417,450 480,068 552,078 634,889 730,123
399,300 459,195 528,074 607,285 698,378
439,230 505,115 580,882 668,014
483,153 555,626 638,970
531,468 611,189
584,615

1,141,276 1,711,465 2,407,111 3,251,028 4,269,847 5,494,635

2026 2027 2028 2029 2030 2031


334,080 400,896 481,075 577,290 692,748 831,298
306,240 367,488 440,986 529,183 635,019 762,023
280,720 336,864 404,237 485,084 582,101 698,521
308,792 370,550 444,660 533,593 640,311
339,671 407,605 489,127 586,952
373,638 448,366 538,039
411,002 493,203
452,102
Year 8 Year 9 Year 10
2032 2033 2034
917,707 1,055,363 1,213,667
877,807 1,009,478 1,160,899
839,641 965,587 1,110,425
803,135 923,605 1,062,146
768,216 883,448 1,015,966
734,815 845,038 971,793
702,867 808,297 929,541
672,307 773,154 889,127
643,077 739,538 850,469
707,384 813,492

6,961,604 8,712,925 10,017,525

2032 2033 2034


997,558 1,197,069 1,436,483
914,428 1,097,313 1,316,776
838,225 1,005,871 1,207,045
768,373 922,048 1,106,458
704,342 845,211 1,014,253
645,647 774,776 929,732
591,843 710,212 852,254
542,523 651,027 781,233
497,313 596,775 716,130
547,044 656,453

10,016,815
1 Crore in 10 Years

For computing a certain amount in certain timeframe we need to know multiple criteria's -

1. No. of Years = 10 Years (known)


2. Amount required for investment = ?? (unknown - Controllable)
3. CAGR Return = ?? (Unknown - Uncontrollable)

We have back calculated in this case to get to Rs. 1 Cr at the end of 10th year.

⚡️Over a period of 10 years, reasonable expectation from Mutual fund should be CAGR of 15-20% maximum.

Based on which we have calculated 2 Scenarios -

11️⃣Assuming CAGR return of 15% and Incremental investment of 10% every year for 10 years

In this case, Starting investment of Rs. 3L in beginning of 1st Year with incremental investment by 10% every year fr

2️⃣Assuming CAGR return of 20% and Incremental investment of 10% every year for 10 years

In this case, Starting investment of Rs. 2.32L in beginning of 1st Year with incremental investment by 10% every yea

👍Please refer to the attached file. You can play around the file as per your thesis and check the returns.

NOTE : ONLY UPDATE THE YELLOW HIGHLIGHTED CELLS, don't touch other cells.

Mutual Fund recommendation

1️⃣Parag Parikh Flexi Cap Fund — NAV Rs. 81.94 - Good track record till now. Good balance of Large cap as well. CAG

Fund manager - Mr. Rajeev Thakkar runs the show and has over 2 decades of experience. Time and again fund has p

As far as we have seen, balanced risk-return approach is followed.

2️⃣Old Bridge Focused Fund -NAV Rs. 11.25- Unfortunately no records to show as the fund has just started in Jan 2024

As the name suggests and guided, funds will be managed with a focused approach - approx. 20 shares. Find the stra

NOTE : Definitely there are other funds as well which are performing good as of today and may perform in future as

Disclaimer - Please note that - invested in some of these MFs through SIP mode.

Past performance of MFs is not guarantee for future returns. Please do your due diligence before investing
of 15-20% maximum.

ears

estment by 10% every year from beginning of 2nd year to 10th year.

years

nvestment by 10% every year from beginning of 2nd year to 10th year.

eck the returns.

nce of Large cap as well. CAGR of ~21% in last 10 years.

ce. Time and again fund has proven through its track record. Capable of delivering the returns in future as well.

nd has just started in Jan 2024. It is managed by Mr. Kenneth Andrade. He is a market veteran with over 30 years of experience

prox. 20 shares. Find the strategy little different over others.

and may perform in future as well - like Quant, Nippon Small cap, Axis Small cap, etc.

nce before investing


ture as well.

h over 30 years of experience. Prior to launching his own fund, he was CIO of IDFC Asset Management.
ent.

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