A = S*R*(R Power n -1)/(R-1)
In the above formula -
A = maturity amount
S = SIP amount (plz. note in case of multiple monthly SIPs it`s advisable to clubbed all SIPs considering a big single SIP)
n = Time duration of SIPs
R = 1 + r/100 (where r is mly. rate of return)
Plz. note if the SIP frequency is qtly. adjust the rate of return to it`s frequency.
The above formula is some what complicated to calculate manually so it`s advisable to use EXL sheet.
Thanks to Ashal for valuable inputs
Also visit http://equityadvise.blogspot.com for an indepth Equity Analysis
what mean by sReplyDelete
Here "S" means SIP amountReplyDelete
If my SIP amount is changed midway...then what is the formula?ReplyDelete
Is "n" is in months or years?ReplyDelete