The Compounding Ledger

The scheme list (fund house + scheme code) is a static list you manage from the Settings tab. Each time you click Calculate, this tool fetches that scheme's actual historical NAV data live from mfapi.in (AMFI-published NAVs) and simulates the withdrawal against real prices — it is a historical backtest, not a forecast. Past performance does not guarantee future returns.

Tax estimate assumptions: gains are computed against your single lump-sum purchase NAV (FIFO, first-in-first-out). For equity-oriented funds, redemptions held ≥365 days are taxed as LTCG at 12.5% after a ₹1,25,000 per-financial-year exemption (tracked across this simulation only — it doesn't account for other capital gains you may have elsewhere); redemptions held <365 days are taxed as STCG at 20%. These are the current (post-July 2024) rates applied uniformly across the whole period, not the rates that were actually in force on each historical date. For debt-oriented funds, all gains are taxed at your selected slab rate with no LT/ST distinction, per current rules for funds bought on or after 1 Apr 2023. Losses are not offset against other gains in this simplified model. For resident Indian investors, mutual funds do not deduct TDS on redemption — this is a self-assessed liability for your ITR, not an actual deduction (TDS rules differ for NRI investors). This is an illustrative estimate, not tax advice — please consult a tax advisor or CA for your actual liability.