ABC of Investment

Assumption Let your Age be 30 Years. You would like to contribute Rs.5000/- per month to your Tier-I Account of NPS. Total years of contribution is 30. Total investment = Rs.5000/- X 12 X 30. Your expectation on return on investment is 10% on annual basis. You would like to buy annuity with 40% of total corpus at the age of 60 years. Your expectation on annuity rate is 6 %. Calculated Result Based on  Assumption         Total amount of money invested up to age of 60 years will be Rs.1800000/- (18 Lakh only). Total Corpus generated will be Rs.11396627/- (1.13 Crore only). Total Return or Gain on investment will be Rs. 9596627/- (95.96 Lakh only). Lump Sum value to be withdrawn at maturity =  Rs.11396627/- X 60% =Rs.6837976/- (68.37 Lakh only). Annuity Value to be purchased for pension = Rs.11396627/- X 40 % = Rs.4558651/- (45.58 Lakh only). Your expected monthly pension will be  Rs.22793/-  ( Rupees Twenty Two Thousand Seven Hundred Ninety Three Only).

What is Mutual Fund? A Mutual Fund is a pool of money from investors who wish to make money. It invests money in Stocks, Bonds, money market instruments and different types of securities. It is a collection of different investments. It is managed by professional Fund Manager. Mutual Fund is well diversified investment tool. It is a low cost investment option. It may be a tax saving investment vehicle. Investments in Mutual Funds are subject to market risk. What is Equity  Mutual Fund? Money in this type of Mutual Fund is invested purely in equity / stock market. If you  invest in 'Equity Mutual Fund', all your money will be invested in stock/equity market by the Fund Manager.  Types of  Equity  Mutual Fund ? Equity-Large Cap : Money is generally invested in stocks of Large Market Capital (> 25000 Crore) like Maruti Suzuki, SBI, Infosys etc. Equity-Small Cap : Money