How is the AutoInvest Value Projection calculated? Me and my colleagues got curious after a chat about investing and tried to figure out how if I invest £100 in a pie with an estimated return of 33% for the next 20 years how does the projected value come out at £2.77million.
I’m assuming £100 biweekly? As it takes £223 a month at 33% to get to £2.77M
33% is huge, compounding at that rate for 20 years is insane. Remember it’s just based on past 5 years performance (which is very inflated due to the good performance lately)
The value projections take into account several factors and it updates dynamically over time. The biggest influencers for the calculation are the deposited amount, the frequency of your deposits and the historical average return of your pie.