Quick Summary
A mutual fund is a professionally managed investment plan run by an asset management company (AMC) that acts as an intermediary for small investors. The AMC invests pooled funds in various securities, such as bonds, money market instruments, and equities. Investors receive units based on their contributions, and as unit holders, they share in the fund’s gains, losses, income, and expenses proportionate to their investment.
A Mutual Fund Calculator is a simple online tool that helps you estimate the returns on your investments, whether through a lump sum or a Systematic Investment Plan (SIP). By entering details like investment amount, tenure, and expected return rate, the calculator projects your maturity value instantly.
It saves time, avoids manual errors, and helps you compare scenarios to make smarter financial decisions. While the calculator provides an estimate, actual mutual fund returns may vary depending on market performance and associated costs.
A Mutual Fund mf Calculator is an effective online tool that helps investors estimate returns and plan their financial journey with ease. Whether you invest through a lump sum or a Systematic Investment Plan (SIP calculator), this tool makes financial planning more accurate and convenient.
Using a mutual fund SIP Calculator ensures smarter wealth creation by helping you compare options, stay disciplined, and choose the right investment strategy for your financial goals.
To provide you with a precise estimate of the maturity value of your investment, the Mutual Funds Calculator applies the notion of future value.
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:
Riya has to calculate the mutual fund investment’s future value (FV) at maturity or after 10 years.
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 = 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.
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.
1. Enter the expected rate of return (annualized percentage).
2. Specify the investment period (in years).
1. Double-check all the entered values for accuracy.
2. Click the “Calculate” or “Calculate Returns” button.
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.
Mutual fund calculator is a valuable tool 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 a mutual fund calculator 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.
For such a long horizon, an equity SIP is considered best because it offers higher growth potential, helps beat inflation, and allows investors to benefit from market compounding and long-term wealth creation.
Different types of SIPs include flexible SIPs, top-up SIPs, perpetual SIPs, and trigger SIPs. Each option allows investors to invest regularly but with unique features like adjustable amounts, automatic increases, no fixed end date, or condition-based investments.
Direct plans usually provide higher returns because they exclude distributor commissions, keeping expense ratios lower. Regular plans involve commission costs, slightly reducing overall returns. Over long-term investments, even a small difference in expense ratio can significantly impact the final wealth accumulated.
The 15-15-15 rule suggests investing ₹15,000 monthly through SIP in equity mutual funds at an expected 15% return for 15 years. This can grow to about ₹1 crore, and extending for another 15 years multiplies wealth through compounding.
Mutual funds offer diversification or access to a wider variety of investments than an individual investor could afford to buy. Investing with a group offers economies of scale, decreasing your costs. Monthly contributions help your assets grow. Funds are more liquid because they tend to be less volatile.
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Authored by, Divya Jain
Content Curator
Divya merges a love for storytelling with instructional design to create content that both educates and inspires. She has written for e-learning platforms, exam prep sites, and student communities, always placing creativity at the core of her work.
Chegg India does not ask for money to offer any opportunity with the company. We request you to be vigilant before sharing your personal and financial information with any third party. Beware of fraudulent activities claiming affiliation with our company and promising monetary rewards or benefits. Chegg India shall not be responsible for any losses resulting from such activities.
Chegg India does not ask for money to offer any opportunity with the company. We request you to be vigilant before sharing your personal and financial information with any third party. Beware of fraudulent activities claiming affiliation with our company and promising monetary rewards or benefits. Chegg India shall not be responsible for any losses resulting from such activities.
