Mutual fund yield calculator software#
Further you can also file TDS returns, generate Form-16, use our Tax Calculator software, claim HRA, check refund status and generate rent receipts for Income Tax Filing.ĬAs, experts and businesses can get GST ready with Clear GST software & certification course. You can efile income tax return on your income from salary, house property, capital gains, business & profession and income from other sources. Just upload your form 16, claim your deductions and get your acknowledgment number online. Clear serves 1.5+ Million happy customers, 20000+ CAs & tax experts & 10000+ businesses across India.Įfiling Income Tax Returns(ITR) is made easy with Clear platform. Hence, it's effectively an interest on interest.Ĭlear offers taxation & financial solutions to individuals, businesses, organizations & chartered accountants in India. What is Compounding?Ĭompounding means an increase in the value of an investment due to the interest earned on the principal as well as the accumulated investment. If you invest 15000 per month in a mutual fund that earns 15% annually, then you'll have a corpus of over 1 crore in 15 years.
Mutual fund yield calculator how to#
Frequently Asked Questions (FAQs) How to earn 1 crore from mutual funds? When it comes to mutual fund investments, you should not only invest money but also your time, because here time is also money! Long-term investment horizon can do wonders to your mutual fund portfolio and following the 15*15*15 rule will make you a crorepati. You would have invested a mere Rs 27 lakh and end up earning Rs 9.84 crore. Now, 15*15*30 rule will help you accumulate a massive Rs 10,38,49,194 (more than Rs 10 crore). You invested only Rs 27 lakh while you earned Rs 73 lakh.įurthermore, if you extend this for 15 more years, your corpus accumulated will be increasing exponentially. It says that if you invest Rs 15,000 a month for a period of 15 years in a stock that is capable of offering 15% interest on an annual basis, then you will amass an amount of Rs 1,00,27,601 at the end of 15 years. This rule is one of the most basic rules that help an investor become a crorepati. These units kept on accumulating compounded interest which swelled up Mr Ram’s portfolio to a whopping 33.9 times his investment. Moreover, he did not redeem his fund units, and he left them invested. This is because he had already accumulated some corpus in his mutual fund investment account by the time Mr Sham began investing. You can notice in the table above that Mr Ram has made more money than Mr Sham despite investing lesser than him. Let’s see how both Mr Ram and Mr Sham stack up at the age of 60: ParameterĬorpus accumulated at the time of redemption He stayed invested until 60 years of age. Mr Ram, although he stops investing at the age of 30, he did not redeem his holdings. His friend Mr Sham started investing at the age of 30 years and goes on to invest until he reaches the age of 60 years. Consider Mr Ram began investing when he was 22 years old, and he stopped investing after eight years. Let us get to the power of compounding with an example. This is the primary theory behind compounding. One can take maximum advantage of compounding by starting to invest in mutual funds at the earliest. Therefore, compounding is the backbone of mutual fund investments and can take people from rags to riches over time. This is possible as the interest earned in the previous compounding period will, in turn, earn interest in the next compounding period. Compounding is a phenomenon which makes small amounts invested on a regular basis grow to a significant sum over time.
The term ‘compounding’ is extensively used in mutual funds. Before we proceed to understand 15*15*15 rule, let’s first understand compounding.
The 15*15*15 rule says that one can amass a crore by investing only Rs 15,000 a month for a duration of 15 years in a stock that offers 15% returns per annum. We have covered the following in this article:
If you are an investor who is looking to accumulate Rs 1 crore, then you can do so by following the 15*15*15 rule.
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