Growth Of Money In Mutual Fund Investments

Since I already started investing in mutual funds, I tried an experiment to determine how well does a mutual fund perform during the year 2010. With this experiment, I got the historical NAVPS of Sun Life Prosperity Phil. Equity Fund (the mutual fund where I have invested) during the year 2010. The historical NAVPS of Mutual Fund Investments in the Philippines is found on this site.

Growth of Money in Mutual Funds

In this experiment, I have initially invested Php 5,000 and added PhP 3,000 per month. Please note that I got the actual NAVPS on random dates each month. As shown in the table above, there are times where the NAVPS (Stock Price in this table since I was not able to edit this spreadsheet) is going up and down. The cost-averaging strategy is performed in this experiment where one buys whether the price is relatively low or high. As shown here, if you have started invested on the said equity mutual fund during 2010, just in a year you will have ~22.53% growth. That's good enough right?


Now, for another experiment, "What if we have at least 20% annual capital gain?". Through this experiment, I will show the power of Compound Interest. We will show here that if you will invest certain amount of money, which grows per year since I will consider increases in your income, and will have twenty percent interest rate, you can really make millions out of your investment.

Sample growth in 10 years

As shown in the table above, you will have PhP 2,282,823.65 in 10 years if you will follow an increase of Php 1,000 per year starting at PhP 3,000 and if your investment will gain at least ~20%. Now I know this table is very optimistic but I think this is one way to motivate people that there is really something to gain if you will just start investing today.

Mark Hugh Neri

Looking for financial planning workshop or for life and/or health insurance with investment options? Got questions related to personal finance? Feel free to message me at Money Gizmo (see link below)

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