1. What is PPFAS Mutual Fund Calculator?

Definition: This calculator estimates the maturity value of a Systematic Investment Plan (SIP) in PPFAS Mutual Fund based on annual investment, expected rate of return, and investment period.

Purpose: It helps investors plan their long-term investments by projecting potential returns from their SIP contributions.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• \( Maturity \) — Final amount at the end of investment period ($)
• \( P \) — Annual investment amount ($)
• \( r \) — Expected rate of return (decimal)
• \( n \) — Investment period in years

Explanation: The formula accounts for compound growth of each annual installment over the remaining investment period.

3. Importance of SIP Calculation

Details: Accurate projections help investors set realistic financial goals, choose appropriate investment amounts, and stay committed to long-term plans.

4. Using the Calculator

Tips: Enter the annual investment amount, expected rate of return (default 12% or 0.12), and investment period in years (default 10). All values must be > 0.

5. Frequently Asked Questions (FAQ)

Q1: Is the expected rate guaranteed?
A: No, mutual fund returns are market-linked and not guaranteed. The calculator provides projections based on your inputs.

Q2: What's a realistic expected rate for PPFAS?
A: Historically, PPFAS funds have delivered 12-15% returns, but past performance doesn't guarantee future results.

Q3: Does this include taxes and fees?
A: No, the calculation shows gross maturity before taxes and expense ratios. Consult a financial advisor for net returns.

Q4: Can I calculate monthly SIPs with this?
A: This calculator is for annual investments. For monthly SIPs, divide annual amount by 12 and adjust the rate accordingly.

Q5: How does compounding work in SIP?
A: Each installment compounds separately for its remaining tenure, leading to significant growth over long periods.