# Mutual Fund Calculator: Calculate Future Returns on SIP

June 27, 2024

A professionally managed investment plan is a mutual fund. It is maintained by a company that serves as a middleman for small investors, called an asset management company (AMC). Bonds, money market instruments, equity shares, and other securities are only some of the investments the AMC makes using money it collects from various investors.

Each investor receives a specific number of units based on the amount they placed in the fund. The investor is the person who owns the units. The unit holder shares the fund’s gains, losses, income, and expenses in proportion to his investment in the fund.

A mutual fund calculator is invaluable for investors to calculate investment returns and develop effective investment strategies. By inputting key parameters such as investment amount, tenure, and expected rate of return, investors can quickly determine the potential returns they can expect from their mutual fund investments.

## What is a Mutual Fund Calculator?

A simulation that aids in calculating the returns from mutual fund investments is the mutual fund calculator. If you invest in a lump sum or via a SIP, you can figure out its maturity value.

You can compute the projected amount at maturity and adjust your financial goals by entering the SIP amount, duration, and frequency.

The mutual fund lets you select the type of investment in the formula box. Either a payment or a series of payments may be made. To determine the maturity amount, you choose the investment amount, the rate of return, and the duration. It displays the investment’s value upon maturity.

## Mutual Fund Calculation Formula

To provide you with a precise estimate of the maturity value of your investment, the Mutual Fund Calculator applies the notion of future value.

### One-Time Investment

For instance, Riya made a one-time investment of Rs. 1 lakh in a mutual fund plan and held it there for ten years. According to Riya, the rate of return on investment is 8% annually. Using the following formula, Riya can determine the investment’s future value:

• Future Value = Present Value (1 + r/100)^n
• Present Value (PV) = Rs 1,00,000
• R = Estimated rate of return of 8% = 8/100 = 0.08
• N = the duration of the investment, which is 10 years.

Riya has to calculate the mutual fund investment’s future value (FV) at maturity or after 10 years.

FV = 1,00,000 (1+8/100)^10
FV = Rs 2,15,892.5.

Consequently, Rs 2,15,892.5 will be the future value of the mutual fund investment after 10 years at an estimated return of 8%.

### SIP Investment

The mutual fund SIP calculator can also be used to determine the maturity value of a SIP investment.

Use the formula:
FV = P [(1+i)^n-1]*(1+i)/I

• FV = Future value or the amount you get at maturity.
• P = Amount you invest through SIP
• i = Compounded rate of return
• n= Investment duration in months
• r = Expected rate of return

FV = P * [(1+i)^n – 1] / I

Where: P = Monthly investment amount (Rs 2,000) i = Monthly interest rate (5% divided by 12, which is approximately 0.4167%) n = Number of months (5 years multiplied by 12, which is 60 months)

Now, let’s calculate the FV:

FV = 2000 * [(1+0.004167)^60 – 1] / 0.004167
= 2000 * (1.004167^60 – 1) / 0.004167
= 2000 * (1.28368 – 1) / 0.004167
= 2000 * 0.28368 / 0.004167
= 567.36 / 0.004167
= Rs 1,36,482.35 (approximately)

So, the future value of Sarah’s SIP investment of Rs 2,000 per month for 5 years at an estimated rate of return of 5% is approximately Rs 1,36,482.35 which is calculating using mutual fund return calculator.

## Steps to Use the Chegg Mutual Fund Calculator

Following are the steps to use:

### Visit the Chegg Mutual Fund Calculator:

2. Locate the Mutual Fund Calculator tool.

### Select the investment type:

1. Choose between lump sum and SIP (Systematic Investment Plan) investment options.
2. Lumpsum: Enter the initial investment amount.
3. SIP: Enter the monthly investment amount and the investment period.

### Provide details:

1. Enter the expected rate of return (annualized percentage).
2. Specify the investment period (in years).

### Review and calculate:

1. Double-check all the entered values for accuracy.
2. Click the “Calculate” or “Calculate Returns” button.

### Example Calculation:

Let’s assume you want to calculate the returns for a SIP investment of ₹5,000 per month for 5 years, with an expected rate of 12% per annum using the mutual fund return calculator.

1. Access the Chegg Mutual Fund Return Calculator.
2. Select the SIP investment option.
3. Enter the monthly investment amount as ₹5,000 and the investment period as 5 years.
4. Provide the expected rate of return as 12%.
5. Review the entered details.
6. Click on the “Calculate” button.

### Results and Interpretation: Based on the inputs, it will generate the following results:

1. Total Investment: ₹3,00,000 (₹5,000 x 12 months x 5 years).
2. Expected Return: The mf calculator will calculate the expected return based on the selected rate of return and investment period.
3. Estimated Returns: The mf return calculator will display the estimated returns on your SIP investment after 5 years.

## Benefits of Using a Chegg Mutual Fund Calculator

Using a mutual fund calculator offers several benefits that can help investors make informed decisions and plan their investment strategies effectively. Here are some key advantages of using a Chegg Mutual Fund Calculator:

1. Accurate and Quick Calculations: A mutual fund return calculator provides precise calculations based on the investor’s inputs. It eliminates manual calculations, reducing the chances of errors and providing instant results.

2. Comparison of Investment Options: The mf calculator enables investors to compare different mutual fund schemes based on their historical returns, expense ratios, and risk profiles. It allows investors to make an informed choice by evaluating various investment options’ potential returns and associated risks.

3. SIP Planning: Systematic Investment Plans (SIPs) are a popular investment method in mutual funds. A calculator helps investors understand the future value of their SIP investments by considering the investment duration, monthly contribution, expected rate of return, and compounding effect.

4. Investment Monitoring: The mf calculator can be used to monitor the progress of investments. By periodically updating the investment values and adjusting the parameters, investors can track their investment growth and make necessary adjustments to stay on track with their financial goals.

By utilizing a Chegg Mutual Fund Investment Calculator, investors gain a valuable tool for effective financial planning, goal setting, and informed decision-making. It empowers investors to make well-informed choices and optimize their mutual fund investments for better financial outcomes.

## Calculate Your Potential Mutual Fund Returns Online

Mutual fund calculators are valuable tools for investors looking to estimate future returns on their SIP investments. You can make more informed investment decisions by understanding the inner workings of these calculators and considering factors such as mutual fund selection, investment tenure, SIP amount, expected rate of return, and systematic investing approach. Utilize the benefits of mutual fund calculators to align your investments with your financial goals and embark on a successful investment journey.

Want to explore helpful techniques to save and grow your hard earned money? Dive in to our guide on Save Money.

### Which SIP is best for 15 to 20 years?

Choosing the best SIP (Systematic Investment Plan) for a 15 to 20-year investment horizon depends on several factors, including your risk tolerance, financial goals, and investment preferences. It is recommended to consult with a mutual fund expert who can assess your specific needs and recommend suitable SIP options from reputable fund houses that align with your investment objectives.

### How to make 1 crore in 20 years in mutual funds?

1. Start early and invest regularly: Begin investing as soon as possible and contribute consistently over the 20 years.
2. Systematic Investment Plan (SIP): Invest through a SIP to benefit from rupee cost averaging and the power of compounding.
3. Review and rebalance: Periodically review your investments and adjust your portfolio to maintain an optimal asset allocation based on your risk profile.

### How do I make 1 crore in 5 years?

Making 1 crore in 5 years is an ambitious financial goal that typically requires a disciplined from start.
1. Invest in startBed assets: Explore investment options that have the potential to generate substantial returns, such as equity mutual funds, stocks, real estate, or business ventures.
2. Take advantage of compounding: Invest early and let your money grow through the power of compounding. Reinvest your earnings and returns to accelerate wealth accumulation.
3. Systematic Investment Plan (SIP): Consider investing through SIPs in mutual funds. It allows regular investments, reduces the impact of market volatility, and averages out the purchase cost.

### How to invest in a 15 * 15 * 15 mutual fund?

According to the 15-15-15 rule, investors in mutual funds make monthly SIP investments of 15,000 rupees at a 15% interest rate for 15 years. And is anticipated to generate about Rs. 1 crore after the term. If you continue to invest for another 15 years at the same rate and with the same SIP, the principle of compounding will be effective.