12 | December | 2012 | wealthymatters

How To Calculate The Returns From Your Mutual Fund Holdings?

December 12, 2012 2 Comments

wealthymatters.com If you have made a one time lump sum investment and opted for the growth/dividend reinvestment options here is the formula: CAGR = [(final amount/amount invested)^(1/tenure)] – 1

In case you have a SIP and have opted for the growth option,then use the IRR feature in excel to calculate your returns.

In every other case use the XIRR feature in excel.

Remember that money out of your pocket is marked”-” and money into your pocket is “+” while calculating IRR and XIRR. For worked samples see this link.

Filed under Paper Assets, Tool Kit Tagged with calculating returns from mutual funds, calculating returns from SIPS, excel, IRR, lumpsum investment, mutualfunds, postaday, XIRR

Planning Your Emergency Fund

December 12, 2012 2 Comments

wealthymatters.com

The graph above shows the value of an individual’s emergency fund expressed in the number of weeks worth of expenses vs. the percentage likelihood of having an emergency that would wipe it out. It starts at 100% with no emergency fund and works down to about 3% at 52 weeks worth of expenses in reserve. Read more of this post