Graph Footnote :
Using 5-year rolling avg 20%, min 16% (2009) and max 25% (2021)
IMPORTANT: The investment projections estimated by this tool are hypothetical, and will not reflect actual investment results, and are not guarantees of future results. The min and max is to indicate the range of past experience. Learn more in our Methodology"
Our Assumptions and Methodology
The primary objective of this investment analysis tool (the "tool") is to help provide education on how current savings and estimated future contributions may help satisfy your future savings goals. Using inputs you provide, we gather general information about a hypothetical scenario and roughly estimate how that scenario may perform over time. The estimated results offered by the tool are not intended to be investment advice or recommendations, and you should not rely on the tool as the primary basis for your saving or investment decisions. The tool is not a substitute for a more detailed plan. The tool's results regarding the hypothetical accumulation of assets are based on historical market data, taking into consideration the range of balance outcomes a portfolio might experience under different market conditions, although the market's past performance does not predict how it will perform in the future. The tool provides results based on how an asset allocation similar to the long-term asset allocation you selected would perform. In addition, the tool incorporates a management fee assumption to hypothetically illustrate the impact of account expenses to estimated future balances. In addition, and to the extent applicable, the tool does not take into account any changes in expenses charged by the underlying investments held in an account, and, if considered, such fees may reduce performance.
IMPORTANT: The projections or other information generated by this tool regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results. Results may vary with each use and over time.
Limitations of the tool
It is important to remember that the tool is not intended to project or predict the present or future value of an actual asset allocation, actual investments, or actual holdings. Also, the tool should not be used as the primary basis for any investment, savings or tax-planning decisions. This tool makes no assumptions about taxes and displays all results in gross (before tax) format. All calculations and results generated by the tool are based on an analysis of historical market data. The tool assumes a level of diversity within each asset class consistent with a specific market index. Volatility of the stocks, bonds and short-term asset classes is based on the historical annual index data available from Value Research. Stocks are represented by various Nifty indexes. Monthly returns assume the reinvestment of interest and dividends. All indices include reinvestment of dividends and interest income. All calculations are purely hypothetical and will not affect your actual accounts. Remember, past performance is no guarantee of future results. Performance returns for actual investments will generally be reduced by expenses which may be different from those used in these hypothetical illustrations. Returns also will generally be reduced by taxes.
How calculations work
This tool estimates the likelihood of a particular outcome based on an analysis of historical market data. The rounded estimates are expressed in nominal terms (not adjusted for inflation). Results are shown are Average 5year rolling returns, Minimum and Maximum 5-year return observed and the dates on which they were observed. If the stock or fund history is shorter, then 3-year or 1-year data is used. The asset projection is based on four data items derived from information provided by you:
Initial balance
SIP or the monthly savings amount assumed to be invested at the end of each period (we assume you save and invest the same amount every month).
Asset allocation (chosen from among the available set of Investment Strategies). The asset allocation is assumed to be maintained throughout.
Investment time horizon (how long before you will need your money) or 3 years, whichever is greater.
IMPORTANT: The hypothetical asset projections do not factor in withdrawals from your Account
The available asset allocation strategies which are suggested may be limited based on your time horizon and/or stated risk tolerance.
All indices are unmanaged, and performance of the indices includes reinvestment of dividends and interest income, unless otherwise noted. Indices are not an illustration of any particular investment, and it is not possible to invest directly in an index.