I Am Investing Rs.5000 Every Year Till 5 Years In Mutual Funds.how Much Will I Get At The End Of 5 Years ?
I am investing Rs. 5000 every year from 2008 until 5 years.I am totally investing Rs.25000 in 5 years. What amount will i receive from the end of 5 years( 2013) in Mutual funds.
The mutual fund provider may be any company like Reliance,Bajaj,ICICI,etc.
I want the approx amount after 5 years ?
Tags: Every, Funds.how, Investing, Mutual, Rs.5000, Till, Will, Year, Years
June 14th, 2009 at 7:43 am
This is a very subjective question, because the returns are not fixed,as in the case of FDs. So it actually varies. However, for the sake of simplicity, lets assume you get 15% p.a. on your investment.
The logic is like this:
Year Amt No. of yrs Future value
2008 5000 5 10,056.79
2009 5000 4 8,745.03
2010 5000 3 7,604.38
2011 5000 2 6,612.50
2012 5000 1 5,750.00
The future value comes like 5000 * 1.15^5 = 10056.79 and so on.
Total comes to 38768.69
The idea is that the amount you invest in 2008 stays invested for 5 yrs, the amt invested in 2009 stays there for 4 yrs and so on.
You can use the function FV in excel
June 14th, 2009 at 7:43 am
Researchs have shown that investing in good mutual funds for a long term period can earn returns between 20-25%