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Integrated Investment Across Mutual Fund,PPF And Gold:


Today we will take a look at the result of integrated investment spread across equity mutual fund,PPF and Gold.

To predict the projected values we need to consider some assumptions and based on that we will show the results.

Assumptions:

  1. Investor have invested Rs.5000/- per month for next 20 Yrs.
  2. Rs.5000/- invested have distributed as Rs.2000/- in equity mutual fund through systematic investment plan(SIP),Rs.2000/- in PPF and Rs.1000/- in Gold.
  3. Assuming returns is a very critical part..We will consider that equity returns will have boundry of [-15%, 15%]..so we will consider three separate cases with SIP equity returns of 15%, 0% and -15% for next 20 yrs.We will consider that interest rates of PPF will average out at 8.6% and that of Gold will be average out at 8%.
  4. We will consider the returns as as average Returns per year basis.
As already stated above,amount of Rs.5000/- distributed as:
Mutual Fund SIP: Rs.2000/- PM
PPF: Rs.2000/- PM.
Gold: Rs.1000/- PM.

Scenario 1:

SIP Returns:15%,
PPF Returns:8.6%
Gold:8%
Total Invested:Rs.12 lakh
Maturity Comes To Be:Rs.45,18,489.

Scenario 2:

SIP Returns Changed To: 0%.,,with PPF and Gold Returns unchanged.
Maturity Comes: Rs.22,81,711.

Scenario 3:

SIP Returns Changed to:  -15%,,with PPF and Gold returns kept unchanged.
Maturity Amount:Rs.19,43,013.
All above 3 scenarios have shown graphically below:
dyerware.com

Of course,year to year rolling values in actual will come different as we have considered average returns here.

But important point we want to note is that if equity offer returns as per expectations then it will be a great boost for portfolio & even if equity SIP give you negative returns of -15% ,,investor will end above the actually invested….


Category: Mutual Funds

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