Monthly and Lumpsum requirements for a goal are calculated by taking into account the asset allocation that is assumed over the goal period. Let's understand this with an example.
- Goal Type
(entered by you): Marriage
- Goal Year (entered by you) : 2030
- Goal Present Value
(entered by you): Rs.10,00,000
Goal Future Value (this will be calculated) : Rs.25,78,534 (this amount could be different based on the inflation rate and the date on which you add the goal.)
- Asset Allocation bifurcation (system generated - but can be changed by you ) : See table below
In the above case, the system calculates the monthly and lumpsum required based on average returns over the period of the goal.
Year Equity Allocation Debt Allocation Average Return 2016-2023 100% 0% 14% 2023-2025 75% 25% 12.25% 2025-2027 50% 50% 10.5% 2027-2029 25% 75% 8.75% 2029-2030 0% 100% 7%
It is important to note that as you start allocating assets from the asset section to this goal, the system will recalculate the monthly and lumpsum required every time.