Financial Need Assessment

Single Goal Planner

We often may have the financial goal of accumulating a target amount in future for the purpose of financing any business investment or for charity or inheritance or gift to others or simply as a personal target. Whatever may be the reason, defining an objective for investments is the right way to planning your savings. One important thing to remember is to account for price rise or inflation whereby the value of money today will decrease in future. So the 1 Crore that you plan today will worth much less in a distant future...

In this tool, you can calculate the amount of investments you will need to to for a targeted amount in future, with and without accounting for the inflation component.

Present Cost of Goal :

Rs.

This the amount you are planning to accumulate in future.

If you already know the actual amount needed in future, please enter the amount and Do Not tick the inflation box.

If you do not know the future cost/value, please enter the present cost /value and tick the inflation box.

Years to maturity :

Years

It is a time duration (in years) by which you want to achieve your goal.

Estimated Increase in your Savings :

Yearly

This represents the increase in your savings on year on year basis in percentage term. We should assume a savings rate (at least 5 to 10% higher) for a salaried person.

Expected Rate of Returns :

Yearly

Different asset classes can deliver varying levels of returns for any given investment horizon. The following matrix can help you with the same

Debt Asset Class - Between 7% to 9%.
Ideal investment horizon is very short to medium term (few months to say 5 years)

Equity Asset Class - Between 10% to 15%.
Ideal investment horizon is long to very long term (say over 5 years)

You may partly invest in both to get an appropriate asset allocation for your investment horizon.

Consider Inflation :

Yearly

Inflation is generally inferred from the measure of CPI released by the government agencies. However, this figure is more about representing the price rise in the basket of goods and services used in consumption than the inflation in marriage costs. We should assume a higher rate of inflation (at least 2 to 5% higher) for marriage costs, considering its nature and also adjusting for the gradual rise in your living standards.

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Financial Need Assessment

Single Goal Planner

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