Investment Portfolio Forecasting with Python

Problem Statement:

In today’s world, financial literacy is more important than ever, yet many individuals lack a solid understanding of key financial concepts, such as compound interest and the benefits of regular saving. This lack of knowledge can lead to missed opportunities for wealth accumulation and financial security.

Investment Portfolio Forecasting with Python aims to bridge this educational gap by providing an accessible and interactive tool that demonstrates the power of compound interest and the impact of consistent monthly contributions. By allowing users to simulate the growth of their investments over time, this project empowers individuals to make informed decisions about their financial future and encourages the practice of regular saving.

Through visualization and easy-to-understand data, users can gain valuable insights into how even small, consistent efforts can lead to significant financial growth. This project not only serves as a practical tool but also as an educational resource, helping to promote better financial habits and a deeper understanding of personal finance.

Introduction

This application allows users to simulate the growth of their investment portfolio by inputting initial investment amounts, monthly contributions, interest rates, and investment periods. The results are displayed in both tabular and graphical formats, providing a clear and comprehensive view of the investment’s evolution.

Features

• Interactive Inputs: Users can input initial investment amounts, monthly contributions, interest rates, and investment periods.
• Dynamic Calculations: The application calculates the total invested amount, total interest earned, and total accumulated wealth.
• Data Visualization: Provides visual representations of investment growth through bar and pie charts.
• User-Friendly Interface: Built with Streamlit, ensuring a responsive and intuitive user experience.

Technologies Used

• Python: The core programming language used for calculations and data manipulation.
• Pandas: For efficient data handling and manipulation.
• Streamlit: To create the interactive web application.
• Altair: For creating dynamic and informative visualizations.

Usage

Once the application is running, you can access it via your web browser. Enter the initial investment amount, monthly contributions, interest rate, and investment period into the input fields. The application will display:

• Final Total Value: The total value of your investment at the end of the period.
• Total Invested: The total amount you have invested over the period.
• Total Interest: The total interest earned on your investments.
• Data Table: A detailed table showing month-by-month calculations.
• Bar Chart: Visual representation of the total invested versus total interest.
• Pie Chart: Proportion of total invested to total interest earned.