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Plan Goals with Mutual Funds
Updated 31 October 2026 · 3 min read · 14 Contents
Plain-language meaning
The mutual fund goal planner works out whether your current corpus and monthly contributions are on track for a dated goal at a return you assume, how large any gap is, and a risk-and-horizon target allocation.
Why it is useful #
It makes the arithmetic of a goal explicit — target, time, contributions and return assumption — so a user can see the monthly change that closes a gap.
Where it appears and the workflow #
Open the planner (/MutualFund/Planner) while signed in. Enter a plan name, goal type, target date (one month to 50 years ahead), region (IN, US, UK, Europe or CA), risk (your saved risk profile or one of four levels), target amount, current corpus, monthly contribution, the annual return you assume, and your current equity, debt, liquid and gold/other amounts. Preview and saving require the funding-planner entitlement.
Calculation or source #
The projection compounds the current corpus monthly at your assumed return and adds monthly contributions as an ordinary annuity paid at the end of each month. The funding gap is the target minus the projected value, and the monthly gap is the extra contribution needed to close it. The target allocation follows the risk level and is capped by the horizon, with a five-point rebalance band.
Prerequisites, inputs, period and unit #
Prerequisites are sign-in and a target date. The return assumption must be between −10% and 30% a year. Amounts are in the plan's currency. No fund or scheme data is used in the calculation.
Worked example #
Illustrative only: a ₹20 lakh goal in 10 years with ₹2 lakh saved and ₹8,000 a month at an assumed 10% leaves a funding gap; the planner shows the extra monthly amount that closes it. At a Growth risk level the target allocation is 65% equity, 20% debt, 10% liquid and 5% gold/other, reduced for short horizons.
What high and low mean #
A larger funding gap means the current plan falls further short at the assumed return. Progress is shown up to 100%.
Positive, negative and zero #
Funding gap and monthly gap are never negative: a plan that already reaches the target shows zero gap. A negative assumed return is allowed and lowers the projection.
Limitations and common mistakes #
The result depends entirely on the return you assume, which markets do not deliver smoothly. Taxes, fees and inflation are not added unless you include them in the assumption.
Market-specific differences #
Regions change currency and default allocation context only; the arithmetic is the same everywhere.
Suggested next steps #
Create a plan, record the funding gap, then lower the assumed return by two points and note how much the monthly gap rises.
Educational use only #
This guide explains descriptive research evidence. It is not investment advice, a price prediction, a recommendation, a claim of predictive accuracy, or an instruction to buy, sell, rebalance or place an order.