SAINTWORDS Crores Planners Course - Level 2
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CRORES PLANNERS COURSE (CPC)
How to achieve seemingly impossible nancial
goals without any prior nance knowledge
SIP
Level 2
Future Value of
Annuity (SIP)
(This booklet is a part of the Crores Planners
Course as a reference. To get the proper
knowhow one should attend the complete course)
Utpal KC
1 Course Director
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SAINTWORDS Crores Planners Course - Level 2
Your achievement is ours
PREFACE
CRORES PLANNERS COURSE (CPC)
How to achieve seemingly impossible nancial goals
without any prior nance knowledge
Everybody works hard to earn and wants to make the best out of their earnings. Unfortunately
90-98% people lose money particularly in equity investment and many more waste their hard-
earned money investing in inferior products, and they are not even aware of it.
People are intelligent, but they are busy in their daily jobs and businesses. Free knowledges are
neither always trustworthy, nor properly organised, nor give personalised answers.
Crores Planners Course (CPC) is a rst step towards the missing links.
CPC is a combination of 4 video sessions and one live session
conducted by renowned investment expert Utpal KC. In addition to
that there is also a live q&a session with Mr Utpal.
For details you can visit the webpage via the following link or scan
the QR code.
https://www.utpalkc.com/croresplanners
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SAINTWORDS Crores Planners Course - Level 2
Your achievement is ours
2nd Edition
September 2022
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SAINTWORDS Crores Planners Course - Level 2
Your achievement is ours
Crores Planners Course (CPC)
Level 2:
Future Value of Annuity (SIP)
After the end of the session you will be able to work out, how much you
can make by investing a xed amount at a certain interval of time in any
instrument like mutual fund or deposits.
(Estimation of future value of a systematic investment plan (SIP))
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SAINTWORDS Crores Planners Course - Level 2
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1. If you invest Rs 120,000 every year in an investment scheme,
how much money will you get after 3 years? The investment
scheme is expected to give an annualised return of 9%.
This is an annual systematic investment plan (SIP)
The applicable spreadsheet function and working is as follows:
=FV(Rate%,NPER,PMT,0,1)
=FV(9%,3,-120000,0,1)
=428,775.48
Let me explain:
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SAINTWORDS Crores Planners Course - Level 2
Your achievement is ours
First, the time line then cash ows
NPER
[Number of Periods]
0 9% RATE 1 2 3 Years
-Rs 120000 -Rs 120000 -Rs 120000 Rs ?
FV [Future Value]
PMT [Payment]
The right spreadsheet function to solve this problem is:
=FV(Rate%,NPER,PMT,0,1)
=FV(9%,3,-120000,0,1)
=428,775.48
How the calculation is done manually?
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SAINTWORDS Crores Planners Course - Level 2
Your achievement is ours
How actually the amount adds upto its Future Value?
0 9% 1 2 3 Years
Amount Today Amount after 1 yr Amount after 2 yrs Amount after 3 yrs
Rs 120,000 Rs 120,000 Rs 120,000
+ +
Rs 120,000 (1+9%) Rs 250,800 (1+9%) Rs 393,372 (1+9%)
=Rs 250,800 =Rs 393,372.00 =Rs 428,775.48
Like lump-sum investments, in case of SIP also we need to adjust the RATE and
NPER if the instalments are paid at an interval shorter than a year like in monthly
SIP, quarterly SIP or half-yearly SIP.
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SAINTWORDS Crores Planners Course - Level 2
Your achievement is ours
2. If you invest Rs 10,000 every month in a scheme how much money will
you get after 3 years? The investment scheme gives a return of 9% per
year payable monthly.
This is a monthly systematic investment plan or monthly SIP. So our periods are
months not year.
There are (3 x 12 =) 36 months. So NPER is 36
Rate of return is 9% per year. So, per month return is (9% / 12 =) 0.75%
NPER (Months)
RATE
0 0.75% 1 2 3 35 36
- Rs 10,000 - Rs 10,000 - Rs 10,000 - Rs 10,000 - Rs 10,000
PMT FV?
=FV(Rate%,NPER,PMT,0,1)
=FV(0.75%,36,-10000,0,1)
=414,613.61
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SAINTWORDS
Your achievement is ours
In October 2018 Saintwords was founded by Utpal KC to
transform people and organisations through training,
coaching and consultancy.
The name, ‘Saintwords’, came from Assamese word
‘Xadhukatha’. In Assamese ‘xadhu’ means a sage or
saint and ‘katha' means words. Assamese 'xadhukatha'
actually means fables or stories.
Since 2018 we have transformed many lives and
businesses that include 20,000 plus paid trainees.
Google rating: 4.9
Utpal KC
Utpal KC is India’s rst Business Wealth Coach. He
has been into the eld of investment banking since
1997. He served the corporate in various capacities
at leadership positions from 1997 to 2016. Since
2016 he has been training people on leadership,
investment and management.
Utpal authored books on nance and was featured
regularly in national and international media.
https://saintwords.com https://utpalkc.com
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