1. What is World Index Fund Return?

The World Index Fund Return calculator helps Indian investors estimate the future value of their investments in global index funds based on compound returns. It accounts for the initial investment, expected annual return rate, and investment period.

2. How Does the Calculator Work?

The calculator uses the compound return formula:

Where:

• \( Initial \) — Initial investment amount in INR
• \( Rate \) — Expected annual rate of return (in percentage)
• \( Time \) — Investment period in years

Explanation: The formula calculates how an investment grows when earnings are reinvested to generate additional earnings over time.

3. Importance of Compound Return Calculation

Details: Understanding compound returns helps investors make informed decisions about long-term investments in global index funds and set realistic financial goals.

4. Using the Calculator

Tips: Enter initial investment in INR, expected annual return rate (typically 7-10% for global index funds), and investment period in years. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What's a realistic return rate for global index funds?
A: Historically, global index funds have returned 7-10% annually, but past performance doesn't guarantee future results.

Q2: How does currency fluctuation affect returns?
A: Returns in INR may vary due to currency exchange rate changes between INR and the fund's base currency.

Q3: Are there tax implications for Indian investors?
A: Yes, global investments may be subject to capital gains tax and dividend taxation in India.

Q4: Should I consider inflation?
A: Yes, for real returns, subtract India's inflation rate (typically 5-6%) from the nominal return rate.

Q5: How frequently should I invest?
A: Regular SIP (Systematic Investment Plan) investments can help average out purchase costs over time.